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PUBLISHED IN LONDON AND FRANKFURT 


Thursday May 13 1982 


***30p 





World’s 
Most 

Honoured 

Watch 


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COWTWHffTAI. SELLING PRICES; AUSTRIA Sch. IS: BELGIUM Ff3S: DENMARK Krfl.BO; FRANCE FrB.OO; GERMANY DM2.0; ITALY L 1.000; NETHERLANDS Fi 2J25: NORWAY 10 6 00; PORTUGAL Esc 50: SPAIN f*t*8S: SWEDEN K/6.00: SWITZERLAND Fr2.0; EIRE 50p: MALTA 30c 


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ARGENTINE JETS DOWNED IN RAID ON FRIGATE 


GENERAL 


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i Soviet spy aircraft arc buzzing 
ofl rigs in the North Sea. 

Bear reconnaissance aircraft, 
flying low over installations, 
are worrying offshore operators. 
They fear a danger to their own 
helicopters. 

Shell UK is preparing a 
report following an incident in- 
volving a spy aircraft and. an 
RAF jet which went through a 
500-metre “ no-go ” zone above 
the BrenL oil field. Page 8 

Dutch coalition 
government fails 

Dutch coalition government of 
Premier Andies Van .\gi col- 
lapsed after the Labour Party 
rejected Christian Democrat 
demands for big spending ruts. 

It followed the refusal of six 
Labour ministers in continue 
serving in the Cabinet over the 
cuts issue. Back Page 

Pit blast: 39 die 

Thirty-nine miners were killed 
and eight others injured in a 
methane gas blast on a coal 
mine in Zenica. Yugoslavia. 

Ulster killings 

A shopkeeper was shot dead as 
he served customers in North 
Belfast and a former member 
of the Ulster Defence Regiment 
was lulled by gunfire as he 
repaired a house in Strabane. 

S. Africa rights 

South Africa's senior govern- 
ment advisory body recom- 
mended granting equal political 
rights 10 all Mai groups 
except the black majority. 

Page 4 . 

Union joins CND 

The Civil and Public Services' 
-Association;, the larger-t Civil 
Service union, decided lo 
.affiliate to the Campaign for 
Nuclear Disarmament. Left 
activists' pressure group,. Page 9 

Poland protest 

Sixteen interned Solidarity 
leaders and advisers plan to 
start an Indefinite hunger strike 
today, marking five months of 
martial Jaw in Poland, an under- 
ground bulletin said. Page 2 

Spanish explosion 

Suspected Basque separatists 
-blew up a power sub-station 
.blacking out large parts of San 
Sebastian and causing serious 
damage. 

Iran arrests 

More than 70 members or the 
Communist Paykar group, one 
of the most radical opposition 
groups in Iran, were arrested in 
Shiraz, Tehran radio reported. 

Labour MP dies 

James Dempsey. MP for the 
traditionally safe Labour seat of 
Coatbridge and Airdrie, died 
yesterday, aged 65. Mr 
Dempsey, who entered the 
Commons in 1959, had a 
majority of 16,156. 

Homes scheme 

The Abbey' National building 
societv launched a scheme to 
buy 500 houses a year in . run- 
down areas and sell them at a 
“decent profit” 

Sword barer 

Israeli police questioned an 
American youth who ran naked 
through Jerusalem’s old city 
market brandishing a sword and 
shouting “God lied. to me." 

Briefly - - - _ , 

Britain has recovered its posi- 
tion as the top export market 
for champagne. Page 6 
King Hassan of Morocco will 
'visit Britain from May 25-27. ] 

David Banker, 50, British Lion 4 
.and Wales centre, has retired . 
from mgby through injury. ] 

An honours degree in English " ] 
was awarded to 82-year-oJd 1 
.Anne Wilkinson, from Kent : 


Equities 
up 5.8; 
sterling 
firmer 


• EQUITIES revived on 
optimism about (he Falklands 
negotiations. The FT 30-sbare 
Index closed 5.R np at 590.9, a 
1982 peak. Page 35 

• GILTS were also encouraged 
by sterling’s firmness. The 
Government Securities index 
added 0,47 lo 69.4L Page 35 

• WALL STREET was 4.28 
down at 862.59 near the close. 
Paso 34 

• STERLING firmed .on en- 
couraging economic statistics 
and hopes of an early end to the 
Falklands crisis. It rose to 
S1.S3S5. up 55 points. DM 4.195 
(DM 4.185). Sw Fr 3.535 
(SwFr 3.5025) and FFr 10.94 
(FFr 10.9125). Its trade- 
weighted Index was 90.4 (90.1). 
Page 36 

• DOLLAR eased to DM 2.2805 
(DM 2.2825) bnl rose to 
SwFr 1.925 (SwFr 1.909) and 
Y233JJ (Y232.75). Its Index was 
111.8 (111.7). Page 36 

• SUGAR daily price fell £S | 
to £113 a tonne, the lowest : 
since September 1979, because ! 


BRITISH FORCES yesterday 
shot down two Argentine air- 
craft which were attacking a 
Royal Navy frigate In Falk- 
land Islands waters, the 
Ministry of Defence 
announced in London last 
night, writes Bridget Bloom, 
Defence Correspondent 

The aircraft believed to be 
U&-baiIt -A4 Skyhawk 
fighters, which are normally 
flown from an aircraft carrier, 
were brought down in the 
early evening, British time. A 
third aircraft escaped. 

A tei^e Ministry statement 
said there was no damage to 


RritLsh ships and no British 
casualties. 

It is understood that the 
aircraft were shot down by 
Sea Wolf surface-! o-air 
missiles. These are deployed 
only on the two Type 22 
Broadsword class frigates 
believed to be with the naval 
task Torce. 

Reports in London suggested 
that the frigates were -patroll- 
ing west or Ike Falkland 
islands, acting as lookouts for 
the rest of the fleet further 
Bast. 

The incident is the first 

Continued on Back Page 




**«. •C 



A flight of Argentine Skvhawk combat aircraft 


Optimism grows for 
Falklands settlement 


Senior civil 
servants to get 
14.3% pay rise 

BY ALAN PIKE 

THE GOVERNMENT yester- But the im mediate increases 
! day approved pay increases needed for this purpose were 
j averaging 14.3 per cent for large, and the Government had 
senior civil servants and officers decided it must ask the groups 
I in ihe armed forces and IS.6 to accept some abatement this 


BY DAVID TONGE AND PETER RIDDELL 


HOPES OF an eventual diplo- 
matic settlement of the Falk- 
lands crisis rose slightly lust 
night. Sr Javier Perez de 
Cuellar, the United Nations 
Secretary-General, who has been 
negotiating with Britain and 
Argentina, said: “1 think we 
might end ou rexercise before 
the end of the week — I hope 
60." 

Sr Perez de Cuellar spoke 
after both Britain and Argen- 
tina had expressed optimism 
following proposals made by 
each side on Tuesday. 

In London Mr Francis Pym, 
the British Foreign Secretary, 
said after a meeting of Mrs 
Thatcher's “war cabinet” yester- 
day morning that the latest 
ideas from the UN “hold out 
some promise of progress.” 

In New York, Sr Jorge Her- 
reras Vegas, the Argentine 
delegate to the UN, told Inde- 
pendent Television News that 
the UN Secretary General is 
“starting lo have some positive 
results in the sense that he Is 
finding some common ground 
between the positions of the 
parlies." Both sides, however, 
warned of problems ahead. 

Sr Perez de Cuellar's com- 


ments were made as he pre- 
pared for the fifth consecutive 
day of separate meetings with 
Sir Anthony Parsons, the chief 
British delegate to the UN, and 
Sr Enrique Ros, the Argentine 
Deputy Foreign Minister. 

Earlier this week there had 
been fears that the UN efforts 
to develop the framework with- 

FALKLANDS WEATHER: 
Wind NW. Force 5-6 (20-25 
knots); shining to NE; 8 ft 
seas. Visibility good, rain 
Inter. Temperature low-4Qs F. 

Outlook: Wind W. Force 5-6. 
8-10 ft seas. Cloudy with 
showers; Temperature low 
40s F. 

in which to begin negotiations 
had begun to stall. But Sr Perez 
de Cuellor said last night that 
on Tuesday “ wc had some fav- 
ourable reactions which gave 
room for this kind of optimism 
you hear from all sides.” How- 
ever he remained very cautious 
and needed in work "at least 
for a couple of days.” 

Mr Pym warned in London: 
“that many dofficult problems 
still remain. We have had our 
hopes raised several times be- 


fore only for them in be dashed 
and we must remember that. 

The UN has put forward a 
series of ideas to both sides 
covering the crucial elements 
of a solution, including a 
ceasefire, withdrawal of the 
British task force and or Argen- 
tine forces from the Falkland 
Inlands, establishment of an 
interim administration over the 
islands, and eventual negotia- 
tions over their future. 

The latest optimism may have 
followed a slight softening in 
Argentina’s " non-negotiablc " 
claims of sovereignty over the 
islands. This was implied by 
Sr Vegas when, referring to 
Argentina's claims he said: 
“ one thing is a position and 
another thing is a determina- 
tion to negotiate.” 

He also said he hoped the 
negotiations would lead to 
sovereignly being given to 
Argentina. But in Buenos 
Aires, after a meeting of the 
Argentine cabinet, Sr Nicanor 
Costa Mendez, set out a 
tougher line: “ Everything in 
the negotiations must lead to 
Continued on Back Page 
Right fights sell-out. Page 10 
Falklands Crisis, Page 4 


120 rj SUGAR' 

■ Loudon DaihrlVta 


of the new U.S. impart quota 
system. Page 29 

• GOLD slipped 50-25 to $332 
in London. In New York the 
May Comes close was $334415 
(5333.7). Page 29 

• INTEREST RATES are on 
their way down. This was the 
consensus, among the Group of 
Ten industrial countries at an 
IMF Helsinki meeting. 

• CENTRAL GOVERNMENT 
borrowing requirement was 
£8 15m last month compared 
with £2.42bn in April 1981. 
Page 8; Lex Back Page 

• FRANCE’S recently-national- 
ised banks were directed to 
make available FFrSbn (£54Sm) 
to the new state industries. 

• NEW YORK will decide by ' 
the end of the summer whether 1 
to set up a slate export-import 1 
bank. Page 6 

• CANADA’S banking system I 
is marked by " fragility." a | 
House of Commons- inquiry into 
bank profits was told. Page 3 

• LLOYD’S insurance market 
accepted a House of Lords sug- 
gestion on amending a clause 
In its self-regulation legislation. 
Page 10 

• SEBIRE ALLS OP won an 
architectural design competition 
for a £20Om development at 
London’s Vauxhall Bridge. 
Back Page 

• FORMER MSC chairman Sir 
Richard O'Brien was appointed 
chairman of the Engineering 
Industry Training Board. Page 
S 

• UNEMPLOYED Swansea 
people setting up their own 
businesses will receive a guar- 
anteed income for six months 
from city funds. Page 7 

• BRIAN HAGGAS agreed to 
pay £9Jm in cash lo buy back 
Ihe Yorkshire spinning and 
knitting businesses sold to 
Dawson International in 1978. 
Back Page; Analysis, Page 8 

4 ROYAL INSURANCE made 
a first-quarter underwriting 
loss of £64m. mainly because of 
householders' claims resulting 
from the bad winter. Back Page 
and Lex. Details, Page 24 


Aslef leaders reject McCarthy 


BY BRIAN GROOM, LABOUR STAFF 


THE THREAT of another rail 
dispute was raised last night 
when the executive of the train 
drivere' union Aslef rejected 
the findings of Lord McCarthy's 
tribunal on introduction of 
more flexible work rostering. 

Mr Ray Bnckton, the union's 
general secretary, said the find- 
ings, disclosed last Friday, were 
“absolutely unworkable. I was 
shocked, when 1 saw them.” 

The tribunal found in favour 
of British Rail's case for depart- 
ing from the drivers' eight-hour 
day, but proposed 13 safe- 
guards, and gave drivers the 
right to veto any proposed 
working arrangements. 

The Aslef decision came as a 
blow to British Rail executives, 
who hoped it would be left to 
the union’s annual conference, 
beginning in London next week. 

Some BR managers drew 
comfort from the fact that the 
conference .would still discuss a 


report on the issue. One des- 
cribed this as " marginally 
hopeful" 

The BR board faces un- 
enviable decisions if the rejec- 
tion is endorsed by the 
conference. The Government is 
unlikely to relent in its insist- 
ence that productivity improve- 
ments must be assured before 
further investment goes ahead, 
but if BR tries to impose new 
rosters on the drivers it will 
almost certainly face more 
strikes. 

Aslef officials suggested that 
it was inconceivable that the 
conference should depart from 
the executive line. Yesterday’s 
decision was agreed unani- 
mously 

Mr Buckton said Lord 
McCarthy’s report would mean 
the end of the eight-hour day, 
a firm Aslef principle dating 
from 1919. The conference 
would be able to express its 


view on this, he said. 

They include maintenance of 
the -guaranteed weekly pay- 
ment : arrangements to ensure 
most shifts are not more than 
eight hours; no increase in 
starting or ending shifts be- 
tween midnight and 5 am; and 
maintenance of exchanging of 
turns. . 

Meanwhile informal talks be# 
tween British Rail Engineering! 
the National Union of Railway# 
men and the Confederation ofl 
Shipbuilding and Engineering* 
Unions failed to remove a 
threat of industrial action over 
5,000 job losses and likely | 
closure of rail workshops at 
Horwich. Greater Manchester ; 
and Shildnn, Co Durham. 

The unions refused to put 
proposals for alternative savings 
unless BR withdrew the planned 
workshop closures. 

Report on rail electrification, , 
Page 8 


Woolworth losses as executives quit 


BY JEREMY STONE 

F. W. WOOLWORTH, the stores 
group, yesterday announced the 
departure of two senior -board 
members. The announcement 
came on the day the group pro- 
duced figures showing a loss of 
£2.35m pre-tax for the three 
months to April compared with 
a profit of £2, 04m in the 
comparable 1981 period. 

Woolworth regards the first 
quarter as the “least signifi- 
cant ” in the year. Turnover in 
the period rose by 8.2 per cent 
to £228. 2m. Although the direc- 
tors state that gross profit is 
higher than a year ago, costs 
have also been rising and trad- 
ing profit fell from £5.7m to 
:£412zn. - 

The pre-tax figure was adver- 
sely affected by higher depre^ 
elation and interest riiafges 
while -the comparable figure for 
the 1981 period was boosted by 
a property surplus of £800,000. 


Woolworth s profits have been 
declining in recent years. In 
the year to January J980, pre- 
tax profits were £57.3m. In the 
following year they were £39Hm 
falling again slightly last year. 
Over the same period, the con- 
tribution from property sales 
rose from £0.8m to £16.5m. 

The departing board members, 
Mr J. H. BradweU, one of the 
directors in charge of buying, 
and Mr J. Blair, responsible for 
Woolworth ’s property portfolio, 
had both been re-elected at the 
annual meeting Jess than two 
weeks ago. Both retirements are 
said to have been for personal 
reasons. 

Mr Blair's departure comes 
in the middle of Woolworth's 
property sales campaign. In 
the year to January last, the 
company’s pre-tax "profits of 
£38.3m included a surplus of 
£16.5m on property sales, and 
(he group recently declared its 

— CONTENTS 


intention of selling a further 
26 properties, valued at about 
£90m. The company admitted 
that there was now “ no one 
at board level " with respon- 
sibility for the property port- 
folio although it was pointed 
out that senior executives, who 
had worked closely with both 
retiring directors, were capable 
of carrying on in their absence. 

There is said to be no im- 
plication of any change in 
policy. A decision will soon be 
made on a successor to Mr 
BradwelL 

Details, Page 24 

£ in New York 

— , May 11 i Previous 


Spot ! $1.8350-6365 fit. 8289-8300 
1 month . 0.30-0.35 pm 0.29-0.34 pm 
X months 0.70-0.75 pm 0.64-0.60 pm 
12 monthsl 1.95-2.05 pm {2.80-1.80 pm 


CHIEF PRICE CHANGES YESTERDAY 

(Prices in pence unless otherwise indicated) 

RISES Marks and Spencer 

Treas 3pc 1985 £82J + ? E Iesscy 

Eftchr 15pc 1997.. .£1078 + i Ropner 

Bank of Ireland ... 235 + 20 Rothmans 

Barr afld WAXA ... 52 + 5 Sraurfit (Jeffenon) 

Breedon Cloud L* 1® T J 5 S^E^nif 

British Tar g + 6 Thorn EMI 

Cararex — ■ f J • 

.SrinST::: ■ 8 + i ■ U Mr 

Glaxo 674 + 11 . Costain - 

Harris Queensway. 190 + 6 Dowty ••••—g*— •• 

HeSb ict EL')i ...... 345+13 .Flight Refuelling... 

uStfs Bank 410 + 10 . Utd Scientific 


Britain’s latest nuclear projeet: the case 

for— and against 22 

Economic viewpoint: disinflation — the 

real victims 23 

Technology: productivity centre for the 

Midlands 31 

Jobs column: reverse in prospects for 
unemployed managers 15 


Business law: heralds of U.S. asbestos 

litigation 19 

Management: West German strategy in 

UK lift truck market 20 

Editorial comment: Ground rules for 
Eurobanks; Freer trade for food ... 22 
Lombard: Reginald Dale with an 
historical lesson for the Falklands 23 


165 + 4 
428 +5 
138 + IS 
101 + 4 
63 + 4 
570 + 8 
440 + 8 
318 + 6 
197 + 7 
460 + 5 

280 *-U0 
132>->e 
288*-* 12 
370 8 


Anrtrictn N*w» 3 

AaporntmcnCs ...... OS 

Apptm. Advto- 1-— • 12-18 

Artt 21 

Base Ritai ......... 2B 

Commsdititt 29 

Companies UK ... 24-28 

Comnett 3S 

Cmsword 21 

Econ. Indicator* ... 32 

Entertain. Guide ... 21 

Europium Nows ... ^ 

European Option* 28 

Euromarket* ' 30 


FT Actuaries ...... 

Foreign BKhangno 

Gold Market* 

inti. Cgmpam** ... 

Leader Page 

La tiara -« 

Lex 

Lombard 

London Optiom ... 


36 

Parliament 

10 

Othars 

37 

36 

Racing 

19 

Waatfsa? 

40 

29 

Share Information 33. 38 

World Trade News 

6 

1-33 

Stock Market*: 


INTERIM STATEMENTS 

22 

London 

3S 

Royal Ins 

25 

23 

Welt Stmt 

34 

Woolworth 

24 

40 

Source* 

34 

ANNUAL STATEMENTS 

23 

Technology 

11 

Brttich Mohair 

26 

26 

TV and Radio 

19 

Cartwright . ... 

26 

30 

UK Nows: 


Elbar Ind 

28 

32 

General 

7.8 

Jotters Ofl Smurfit 

24 

2B 

Labour 

8 

Nurdln 6 Peacock 

26 

38 

Unit Truata: 


Utd. Newapaper* 

27 

4 

Authomed 

36 

Whoalocfc Martian 

28 


Men & Matter* ... s General 1. 1 

Mining 28 Labour I 

Money Market* — 58 Unit Truitt: 

Oversea* NOW* < Authomed 31 

For latest Share Index phone 01-346 8026 


EEC ready 
to extend 
trade ban 

By John Wyies in Strasbourg 

THE EUROPEAN Commission 
has decided io make a formal 
proposal to EEC governments 
to extend by another month 
until June 17 the Community's 
ban on imports from Argentina. 
M Gaston Thorn, the Commis- 
sion president, announced this 
to the European Parliament 

here yesterday. 

His statement was not 
altogether unexpected. How- 
ever, the Commission's 
decision is a vital procedural 
move towards extending the 
trade embargo, which expires 
next Monday. The question 
may well have to be decided by 
a meeting of EEC foreign 
ministers on Sunday if senior 
officials from the Ten's foreign 
ministries cannot reach agree- 
ment during talks on Saturday 
in Brussels. 

Britain is anxious for such 
a meeting so that a fresh 
attempt can also be made to 
resolve its demand for reduced 
payments to the EEC budget 
If there is no breakthrough of 
any kind, the UK could be 
involved in a confrontation 
with its Community partners 
over farm prices at a meeting 
next Monday of agriculture 
ministers. 

The Dish Government has 
been the most outspoken 
opponent of the trade sanctions 
within the Community. Mr 
Charles Haughey, -the Irish 
Prime Minister, has indicated 
that his country might not renew 
the ban whatever the ot 
the ban whatever the other 
members decided. 

In Dublin yesterday, a govern- 
ment spokesman said that there 
was no change in the Irish 
Government’s opposition to the 
sanctions, hut he added that 
their renewal was a matter for 
the meeting of the Community's 
foreign ministers. 

In the meantime, the Euro- 
TJBau Parliament yesterday un- 
ambiguously advised member 
r \ov*nments to agree to renew 
nn^tions against Argentina if 
no peaceful solution to the con- 
flict were reached by May 16. 

The Parliament voted by 131 
votes to 79 in favour of a 
Liberal resolution blaming the 
Continued on Back Page 


per cent for judges. 

But although these senior 
groups will benefit from con- 
siderably higher pay increases 
than MPs and Ministers — for 
whom the Government is pro- 
posing an cxrra 4 per cent — 
the rises fall below the recom- 
mendations of the Review Body 
on Top Salaries. 

Most of the Review Body's 
previous recommendations — for 
top salaries appropriate in 
April 1980— have never been 
fully implemented and, if the 
Government had accepted its 
latest report in full, it would 
have meant increases averaging 
I 39.4 per cent for the Civil Ser- 
vice and Armed Forces, and 
J 24.3 per cent for the Judiciary. 

The Government, however, is 
coming under attack from some 
MPs for allowing top salary in- 
creases above pay settlements 
at lower levels in the public 
i sector — and from others for 
a miserly approach to MPs' own 
pay. 


‘Justified’ 


Mrs Thatcher told the Com- 
mons yesterday that the Review 
Body had argued cogently tha£ 
substantial increases in the 
salaries of the groups covered 
by the report, were justified, 
and the Government agreed. 

“ It is in the national interest 
to ensure an adequate supply 
of candidates of sufficient 
cal’bre for appointment to 
judicial office and to provide 
an adequate career structure 
and suitable differentials in the 
higher reaches of the Civil Ser- 
vice and the Armed Forces," 
she said. 

There were, said the Prime 
Minister, "sound management 
reasons ” for bringing these 
salaries up to date quicJdy and 
for keeping them up to date. 


year. 

In its report the Review 
Body, chaired by Lord Plowden, 
says that, if It had been 
concerned simply to draw 
comparisons with salaries in j 
other occupations, ther> would 
have been a “strong case for 
significantly larger salaries " 
than those which it 
recommends. 

Comparison 

The £40.000 recommended 
for Permanent Secretaries, 
Admirals, Generals and Air 
Chief Marshals, says the report, 
is less than half the median pay 
of chief executives in the 62 
largest companies used in a 
survey to establish comparisons. 
The £45,000 recommended for 
High Court judges is far below 
the earnings of most successful 
barristers. 

Salaries of public servants, 
for whom negotiation is not 
appropriate, says the report, 
should not be determined 
simply on the basis of the 
political or economic pressures 
of the moment. If these salaries 
were allowed to fall out of line 
with the responsibilities carried 
and with opportunities available 
elsewhere. “ those concerned 
will not go on strike and there 
wild be no mass exodus." But 
in the long run by process of 
attrition the quality of services 
would suffer to the national 
detriment. 

The proposed Ministerial 
salary- increases mean that a 
Cabinet Minister’s pay would 
rise from £27,825 to £28,950. 
Although the Prime Minister's 
new salary would be £38.200 
she draws only the same amount 
as other Cabinet Ministers. 

Civil Senior Union conference. . 
Page 9 


EXAMPLES OF NEW TOP SALARIES 



Current 

salary 

Recommendation 
for 1982 

New 

salary 

CIVIL SERVICE 




Permanent Secretary 

Under Secretary 

£33,170 

£40,000 

£37,750 

£21,935 

£26,000 

£25,000 

ARMED FORCES 




Admiral/General/Air Chief 
Marshal 

£33,170 

£40,000 

£37.750 

Rear Admiral/Major General/ 
Air Vice-Marshal 

£21,935 

£26,000 

£25.000 

JUDICIARY 




Master of the Rolls/ 

Lord of Appeal 

£41,000 

£51,500 

£48050 

High Court Judge 

£35,000 

£45,000 

£42,500 

Circuit Jucfee, etc. 

£23,250 

£29,000 

£17,750 

Metropolitan Magistrate/ 
Provincial Stipendiary/ 
Chairman, industrial 
Tribunal, etc. 

£20,750 

£25,000 

£24,000 


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East Europeans 
accuse Moscow 


over economy 


BY LESLIE COLITT IN BERLIN 


EAST EUROPEAN economists 
have blamed the Soviet Union 
for part of the sharp slowdown 
■in the economic growth of their 
countries. The price of Soviet 
oil. in particular, they said, 
has risen faster than prices for 
the manufactured goods which 
Eastern Europe exports to the 
Soviet Union. 

This has “caused distinct 
harm to the economies of most 
of the European Socialist 
countries" the East Europeans 
noted at a recent meeting of 
Coraecon economists. 

An influential Communist 
publication *' Problems of Peace 
and Socialism," which is edited 
in Prague, has reported on The 
economic gathering which dealt 
with the decline in the growth 
rates of Coraecon countries. 

Hungarian economists at the 
meeting criticised the policy 
followed until recently by all 
Comecon countries except 
Hungary - of using artificial 
prices to shield domestic indus- 
try from the influence of inter- 
national prices. 

They said this led to worsen- 
ing balances of trade and pay- 
ments. Even more seriously, 
it slowed down structural 
economic changes, thus •“com- 
pletely contradicting the goals 
o fthe state." 

The Hungarians, Dr Karoly 
Ltpk-ovics and Mr Aladar Sipos, 
noted that in recent years 
“.structural defects" had become 
evident in Comecon's economic 
integration and there was still 
no agreement to adjust toward 
international levels the prices 
for agricultural products traded 
in Comecon. This hurt countries 


Hopes of greater Soviet 
industrial growth dashed 


BY ANTHONY ROBINSON IN MOSCOW 


OFFICIAL hopes that Soviet 
industrial production would 
improve after a slow start to the 
year have been dashed by pub- 
lication of January-April indus- 
trial output statistics which 
show a 2.1 per cent growth rate. 
That compares with the target 
in the annual plan of 4.7 per 
cent growth in industrial output 
for the whole year. 

The current growth rate is 
the lowest for many years. When 
the first-quarter results were 
announced last month, ihe 
government statistical office said 
that March figures showed a 3.7 
per cent increase, implying 
hopes of an improvement on 
virtual stagnation in the first 
two months. The April figures 
show, however, that production 
growth is still much less than 
■that in thp plan. The 1.5 per cent 
growth in labour productivity 
has also not improved. 

The Communist Party news- 


paper Pravda published last 
week a major article by Profes- 
sor V. Trapeznikov. a prominent 
economic , theoretician, which 
argued that higher quality was 
more important than higher 
growth. 

The drive for higher produc- 
tivity and quality is the keynote 
of the current five-yenr plan. To 
some extent, this drive is illus- 
trated by sharp percentage, 
increases in the output of 
robots, -nuraerically-t'antroned 
machine tools and electronic 
equipment. 

At current growth rates, In- 
dustrial production is now ! 
rising much more slowly than 
military spending. The latter, 
according lo western estimates, 
is rising at between 3-1 per cent 
a year. The military sector is 
therefore taking an increasing i 
share of GNP, as well as being 
a considerable cause of short- 
ages suffered by the civilian 
economy. 


Bonn job scheme cleared 


BY JAMES BUCHAN IN BONN 


THE LAST big obstacle to the 
enactment of the Bonn Govern- 
ment's DM 12.5bn (£3bn) job 
creation scheme was removed 
yesterday with the agreement 
of opposition Christian Demo- 
crat politicians to approve the 
10 per cent investment bonus 
that is central lo ihe scheme. 

The coalition government, 
however, could only wrest this 
concession from the opposition 
at the cost of abandoning its 
cherished means to finance the 
bonus, a uue percentage point 
increase in v3fue added tax to 
14 per cent from mid-1983. The 
CDU has opposed the increase 
in VAT on the ground it would 
add to casts and work against 
job creation. 

Agreement was reached yes- 
terday afternoon in the all-party 


mediation committee, which 
was called by the coalition after 
the Bundesrat — the upper house 
representing regional govern- 
ments, of Which the opposition 
controls a majority — threw out 
the investment bonus earlier 
this year. 

Tile investment bonus, which 
will be retroactive to January 
1, is expected to cost some 
DM 4bn and now will have to 
be absorbed into the budgets 
from 1983 and 1984. Discussions 
over the 1983 budget between 
the coalition parties, Chancellor , 
Helmut Schmidt’s Social Demo- 
crats and the Free Democrats, 
are to start soon and could well 
generate almost as much heat 1 
as the debate over the employ- 
ment programme at the begin- 
ning of this year. 


Union’s Dublin protest 


DUBLIN could be badly affected 
by a half-day strike and demon- 
strations on May 24 organised 
by the local council of trade 
unions against the controversial 
pay-related social Insurance 
scheme. 

It has been the focus of 
resentment among workers, par- 
ticularly in the private sector. 


since the rates of contributions 
were increased in the last bud- 
get. Its detractors claim that, 
since contributions are levied on 
gross earnings and are not 
allowable against tax. the 
scheme amounts to double taxa- 
tion. Tbe higher level of contri- 
butions from private sector 
workers is also resented. 



such as Hungary, Romania and 
Bulgaria which are important 
Comecon suppliers of agri- 
cultural products. 

The fact that such criticism 
has been reprinted in a highly 
orthodox and pro-Soviet publi- 
cation indicates bow seriously 
Comecon's economic problems 
are now regarded 'by its econo- 
mists and planners. 

The Romanian participant at 
tbe meeting, Mr Grigore Botoi. 
reminded tbe others it was 
necessary to narrow the differ- 
ences in development between 
the Socialist countries. This 
implied greater aid from the 
advanced Comecon countries. 

His remark that the differ- 
ences in development had actu- 
ally widened was vigorously 
countered by the Czechoslovak 
representative, Mr Radovan 
Riohta. He said Czechoslovak 
calculations showed the differ- 
ences in the material wellbeing 
of tbe Comecon countries had 
narrowed in the past 30 years. 

Dr Otto Reinuld. the repre- 
sentative from East 'Germany, 
which alone achieved a 5 per 
cent growth rate last year, 
warned that a failure by Come- 
con to achieve dynamic growth 
“must lead to contradictions 
and social conflicts, to a halt or 
to setbacks in the entire devel- 
opment of socialism." 

A prominent Soviet partici- 
pant. Mr Oleg Bogomolov, direc- 
tor of the Institute for the 
Economy of the Soralist World, 
remarked, with an eye to the 
East Europeans, that the Come- 
con countries used 30-40 per 
cent more energy than West 
European countries to produce 
one unit of national income. 



Solidarity 
16 begin 
hunger 


strike today 


By Christopher Boblnski 
In Warsaw 


They include Mr Jan 
Rnlewski from Bydgoszcz, 
Air Janusz Onyszkiewlcz, at 
one time ihe union’s spokes- 
man, and Air Jaeek Kuron, 
an adviser. All are interned 
in a special block in the 
Biai Olefca prison in Warsaw. 

In a statement published 
in a clandestine news sheet, 
the 111 say they back the pro- 
posals for soeiai accord 
between tlie Government and 
Solidarity worked out ' by a 
group or Roman Catholic 
Church advisers. 


- This marks an Important 
advance in attitudes among 
the tup union internees, 
many of whom were more 
radical than the Church in 
their political attitude 
before martial law was 
Imposed. 

The statement brings the 
Internees in line with those 
members of the union's 
leadership still at liberty. 
Solidarity has called a 15- 
miiiute strike throughout the 
country at noon today to sup- 
port a demand for talks with 
tiie Government. ' 


'• Union leaders, like Mr 
Zbigniew Bujay from 
Warsaw, have said they' also 
accept the Church proposals 
which call for a renewed 
recognition of Solidarity, 
albeit devoid of its political 
ambitions. 


The chances of any agree- 
ment are small for the 
moment as Gen Wojclech 
Jaruzlski, the country's 
military leader, has made it 
dear to Archbishop Jozef 
Clemp, the Polish Primate, 
that he considers the Church 
proposals too radical/ 
especially where they call for i 
a return of Solidarity. 

Afeamvhile, a group of 
Government advisers have 
warned of the danger or a 
sharp growth in incomes both 
in industry and agriculture, 
leading to another bout of 
inflation. 

The warning comes in an 
unpublished report circulated 
to the Government on the 
state of the economy prepared 
by the newly-formed indepen- 
dent consultative economic 
council composed of academics 
and industrial managers and 
headed by Prof Czeslaw 
Bobrowski. 

The report says the start 
on balancing supply and 
demand, made when prices 
were raised liy mure than 200 
per cent last February, is 
endangered by the prospect of 
rising prices for farm pro- 
duce. promises to introduce a 
system of cost-of-living 
increases and reforms of the 
wages system. 

It stresses the importance 
uf a growth in export earn- 
ings and says that the effects 
of the mneb-he raided reorien- 
tation of Poland's trade from 
the West to Comecon should 
not he overestimated. It 
emphasises that tbe greatest 
threat and source of uncer- 
tainty for tbe economy is tbe i 
unresolved. problem of | 
Poland's debts and new | 
credits. I 


Financial Times .Thursday, , Mag 13 -1982 


EUROPEAN NEWS 


v-aftf-v'';. yt, 


John Wyles on the deepening conflict over EEC farm prices and budget contributions 


i > 


Britain isolated in sea of Community troubles 


Mr Jacek Kuron . . . indefinite 
fast. . 


SIXTEEN OF the Solidarity' 
union’s leaders and advisers 
are to start an indefinite 
hunger strike today to mark 
the fifth month of martial law 
in Poland. 


"IT WOULD he a terrible 
reflection on the Community if 
its foreign policy was worked 
out on the basis of negotiations 
on the level of farm . prices ” 
— Mr Peter Walker^ Britain's 
Agriculture Minister, said this 
u-eek. 

'‘Ministers will take account 
of things that have gone on in 
the Farm Council I am not 
sure, that the rime trill go on 
with sanctions against Argen- 
tina " — Mr Jan de Koning, 
the ’NetherUmd's Agriculture 
Minister said this week. 

LUCE three rivers flowing Into 
a single sea of troubles, 
Britain's veto on an. EEC farm 
price rise, its linked demand 
for cuts in its contributions to 
the Community budget and its 
probable request for a renewal 
of sanctions against Argentina 
make the next few days one of 
the most crucial and difficult 
periods since it joined the 
EEC. 

There is nothing unexpected 
about the conflict over farm 
prices and the budget contribu- 
tion. Britain has made it clear 
for months that it would not 
allow a price rise through with- 
out a new agreement pegging 
down its payments to Brussels. 

The unforeseen element is 
the Falkland* crisis, which 
seems to be having a psycho- 
logical impact on the way the 
other nine are responding to 
Britain's demands. No member 
state is actually demanding a 
quid pro quo on farm prices as . 
payment for the solidarity the 
Nine have displayed and are 
expected by the British to con- 
tinue to display, over the Falk- 
lands. Such a demand, they 
would agree with Mr Walker, 
would be a terrible reflection 
on the Community. 

There is, however, a tangible 
feeling among the other govern- 
ments that one valuable political 
gesture deserves another: “ Soli- 
darity is a two-way thing said 
Herr Josef Ertl. The West 


MEPs back worker participation plan 


PROPOSALS requiring EEC 
member states to introduce 
equivalent systems for work- 
er participation in public 
companies with more than 
1,000 employees have been 
approved by the European 
Parliament my 158 votes to 
109. writes John Wylcs. 

Tbe favourable vote clears 
the way for negotiation by 
the Connell of Ministers on a 
heavily-amended draft direc- 
tive which was first tabled by 
the Earopean Commission 
nearly 10 years ago. During 
that time the draft fifth direc- 
tive on the structure of pub- 
lic companies has been a 


source of immense contro- 
versy largely because of its 
attempt to Impose on mem- 
ber states West German- 
style co-determinations 

systems. 

The directive which will 
find its way to the Council, 
however, will be substantially 
more flexible than the ori- 
ginal. The Commission has 
yet to decide its final shape 
hut is unlikely to depart sub- 
stantially from the approach 
which has now been endorsed 

This would give member 
states the choice between 
maintaining unitary board 
systems or . adopting a two- 


tier structu re with a manage- 
ment board and a supervisory 
board with a membership be- 
tween a third and a half of 
employee representatives. 

Countries maintaining a 
unitary system could allow 
for one third participation by 
employee representatives or 
require the creation of a re- 
presentative council which 
would enjoy similar rights to 
consultation as a supervisory 
hoard. The parliamentary 
draft also Introduces an 
option allowing for the crea- 
tion of “equivalent" partici- 
pation systems through collec- 
tive bargaining machinery. 


German Farm Minister. Britain's 
refusal to make the gesture and 
its manifest preoccupation with 
the FalkJands crisis has forged 
a steely determination in other 
capitals to force London into a 
more compromising approach. 

Thus, we saw on Tuesday un- 
precedented attempts to force 
through the farm price package 
over Britain's solitary opposi- 
tion. West Germany, Italy, the 
Netherlands and several other 
governments emphasised their 
will to wear down the British by 
considering a move to overturn 
the celebrated “Luxembourg 
compromise.'' Since 1966. this 
"gentleman's agreement" has 
enshrined in community deci- 
sion-making the principle of 
unanimity on issues on which 
any member state declares that 
vital national interests are at 
stake. 

There may be a strong 
element of bluff in this question- 
ing of hallowed traditions, but 
It is an indication of the "no 
surrender " attitude prevalent 


among the nine. If EEC foreign 
ministers meet again this week- 
end to discuss the budget 
problem as weU as Argentine 
sanctions, and if Ihey again fail 
to make progress, then the 
effort to steamroller a farm 
package through despite British 
objections will again be made 
at the Agriculture Council next 
Monday. . 

If in the unlikely event all 
the Nine governments decide to 
abandon the Luxembourg com- 
promise, then the Community 
will be a very different place, 
since all the decisions would be 
able to be resolved by majority 
vote. At the same time, the basis 
of British membership might 
well be called ante question 
since the unanimity principle is 
held dear in London. . 

The prospects for progress on 
the budget at any foreign 
ministers’ meeting look dismal. 
West Germany has dug un- 
usually deep trenches around its 
refusal to raise an offer, around 
which the other eight member 


states have rallied, to pay 
special rebates worth £1.35bn 
over three years. 

The British calculation Is that 
its blockage of the farm package 
will shake more money loose. 
This may eventually be the 
case, but probably not before 
British determination has been 
further tested and the EEC 
crisis deepened, by fresh 
attempts to force through the 
farm price package. 

From where Mrs Thatcher is 
sitting. Britain's partners are 
beang characteristically difficult 
The Downing Street view is that 
once they are forced into a 
crisis, then they will start see- 
ing things the British way. 

Moreover, it is pointed out 
that . they did agree that 
Britain’s budget problem would 
be resolved in parallel with 
decisions on recasting the 
agricultural policy. However, in 
practice, none of these decisions 
have, beeq taken and the fmm 
price package contains virtually 
nothing to curb overproduction. 


and to give better control of 
spending on EEC agriculture. 

• The British rightly argue 
that the farm -package contain- 
ing the highest single price rise 
in' EEC history could have a 
seriously adverse impact on 
their' budget contributions. The 
UK, after ail, funds about 22 
per cent of the farm budget and 
gets back 12-13 per cent 

There is nothing .in Mrs 
Thatcher's past to suggest that 
she Vrin weaken first in this 
deepening confrontation within 
the Community. But she will 
surely have to weigh the pos- 
sible costs of doing serious 
damage to relationships within 
the Community at a time when 
the evolution of the Falkland^ 
crisis is so uncertain 

That is why there is a strong 
belief among British and other 
EEC officials in Brussels that 
she may , eventually want to seek 
a ceasefire within the Com- 
munity.’ This would take the 
form of a 12-month arrange- 
ment limiting Britain’s pay- 
ments., to -.Brussels with an 
undertaking from the other 
-Nine to negotiate -a longer-term 
deal later. 

Such an arrangement would 
offer a speedy exit from the 
current crisis while enabling 
everyone to save a measure of 
face, but it would also require 
the' other Nine to add at least 
£175ra to the rebate they .have 
in mind in order to tempt the 
British. As a jesult around 
£625m would be passed back 
from Brussels to London in 
1982, leaving Britain paying 
around a net £375m. 

In May 1980, Mrs Thatcher 
agreed- to a temporary deal 
based on the same proportional 
return to the UK of two-thirds 
of its net contribution. The 
other member states were Part 
of the same agreement They 
can • hardly expect Britain to 
accept less now and Mrs 
Thatcher r can hardly expert 
them to offer more. 


Brussels wants more money shifted into social fund 


BY JOHN WYLES IN STRASBOURG 


THE EUROPEAN Commission's 
effort to demonstrate that there 
is more to the EEC than the 
common agricultural policy in- 
tensified yesterday with its 
adoption of a draft 1983 budget 
committed to spending 33 per 
cent more on regional and 
social spending. 

This compares with a planned 
increase in farm spending of 7 
per cent which will not. how-, 
ever, be able to accommodate 
the cost of the 1983 farm price 
package. A supplementary 
budget will probably be needed 


for that, said Mr Christopher 
Tugendhat, the-budget commis- 
sioner here yesterday. 

Meanwhile, tbe Commission 
has acknowledged that it over- 
estimated the funds needed for 
the CAP this year by submitting 
amending proposals to the 1982 
budget which will, shift £2S0m 
(ECU500ra) out of the CAP 
.allocation into the social fund,., 
food aid, and research and- 
housing development-. in 
Northern Ireland. 

The sum available for re- 
allocation would undoubtedly 


have been greater, hut for the 
1982-83 farm price package, 
currently blocked by Britain, 
which on a conservative esti» 
mate will cost £S40m 
fECUl.obn) in a full year. Mr 
Tugendhat emphasised yester- 
day that the Commission wants 
member slates to appreciate the 
austerity of its proposals. If 
peeial payments to the- UK are 
put to one side, the . increase in 
spending will be 8 per cent 
higher . than in 1982 with the 
budget totalling £12.24bn 
(ECU Sl.SbnL The commit- 


ments budget, covering alloca- 
tions over more than one year, 
has increased by 11 per cent to 
£3.4bn (ECU 33.9bn). 

According to Mr Tugendhat, 
the draft represents a first step 
•by the Commission towards its 
newly-defined priorities - of 
developing • noo-agricultural 
policies.. Increased regional and 
social spending is an essential 
.element - of the Community's 
attempt .to., grapple with inr 
fiatfon, but it was also attempt- 
inn to double albeit modest 
resources allocated to energy. 


investment. 

Nevertheless, farm spending 
will still take the lion’s share of 
. the budget with an allocation of 
£7.86bn (ECU 14.05bn.) or 65 
per cent of total spending com- 
pared with 70 per cent in 1980. 
By contrast the regional fund's 
share mil he 8.7 per cent 

If the Council of Ministers 
stays, true to its. traditions it 
-will attempt to -cui-the alloca- 
tions for rnon-fann spending 
whidi thfrEuropean "Parliament, 
in turd, will attempt to restore 
and possibly supplement 


Danes plan 
increase in 
indirect tax 


Action urged oyer Italian crime Poll row 

BY RUPERT CORNWELL IN ROHE over Right 


By Hilary Barnes In Denmark 


DENMARK'S minority Social 
Democratic Government is 
planning to increase a series of 
; indirect taxes and escise taxes 
from July 1 and to introduce 
tax on the interest incomes of 
life assurance companies, pen- 
sion unds and tax-free founda- 
tions from the New Year. 

Prime Minister Anker 
.Toergensen has given the two 
parties which support the 
Government, the Socialist 
People's Party and the Radicals, 
ten days to reach agreement 
with the Government on the 
economic policy measures. 

If they do not come to heel 
the Government will probably ; 
try to navigate its measures 
through the Folketing without 
an agreed basis of support and 
■with a high risk of defeat. 

The tax increases are pri- 
marily intended to help pay for 
measures to ball out fawner 
suffering effects of the reces- 
sion and for an ambitious job- 
creation. programme. 

The proposed indirect tax in- 
creases include rises on tobacco 
and alcoholic drinks tax, a new 
lax on cheques, taxes on video 
tapes and a rise in energy taxes. 

The total revenue increase 
would- be about DRr 3.7bn 
f f 246m ) 

The tax on capital incomes 
of tax-free institutions would 
yield about DKr 2b n. 


THE ITALIAN Communists 
have issued a strong appeal for 
emergency government action 
against organised crime. Their 
appeal coincides with the pub- 
lication of data illustrating tbe 
alarming rise in murders in 
recent years, especially in the 
Naples area, Palermo, and in 
Calabria. 


According to the Communist 
Party — which Jess than a fort- 
night ago saw Sig Pio La Torre, 
its Sicilian regional organiser, 
murdered in a Mafia ambush in 
Palermo — there were 3S gang 
killings in the Sicilian capital 
in the first four months of 1982, 


compared with 101 in the whole 
of last year. 

The picture, in Naples, 
afflicted by warfare between 
underworld groups, is even 
worse. The two years of 1980 
and 1981 alone witnessed 383 
such murders, against 301. in 
Che previous five-year period. 

This year promises to be 
bloodier still. Between January 
and April 126 people have died 
a figure which represents one 
killing every 23 hours. \ 

But Party data claim that the 
most violent area in Italy — 
and in the West — is the plain 
of Gioia Tauro jn the southern 


region of Calabria. This is the 
centre of operations by the 
local Indrangheta - criminal 
organisation. i 


inAndalucia 


By Robert Graham in Madrid 


The homicide rate in the last 
few years -had reached. 20 per 
100,000 inhabitants annually. 
.The comparable figure for 
greater New York was .said to 
be 17.2. 


The Communist Party sug- 
gests that the crime. waVe could 
be controlled by sweeping new 
police power against kidnappers 
arid drugs and arms traffickers, 
similar to those used against 
terrorist suspects. : 


Portugal rings Papal welcome 


BY DIANA SMITH IN LISBON 


POPE JOHN PAUL arrived in 
Lisbon yesterday to broadcasts 
of Beethoven's Ode to Joy and 
pealing bells. 

The main object of his four- 
day visit is a pilgrimage to The 
shrine of Our Lady of Fatima, 
to give -thanks for the sparing 
of his life in the assassination 
attempt last year. The attempt 
took place on May 13, anniver- 
sary of the date on which the 
Virgin Mary is said to have 
appeared to three shepherd 
children in Fatima in 1917. 

The Government, heavily 
dependent on the Roman Catho- 
lic vote, is making sure the Pope 


receives a warm welcome, and 
is preparing an amnesty as pari 
of its contributions to the cele- 
brations. 

However, Pope John Paul is 
also being received as chief of 
the Vatican ' State by General 
Antonio Ramalho Eanes, the 
Portuguese President, becoming 
tiie first Pope ever to enter the 
presidential palace in Belem. 

All roads leading to Fatima 
for the past week have been full 
of pilgrims walking to Portugal’s 
holiest shrine. They are mainly 
poor rural people from the 
north, seme of them from hun- 
dreds of- miles away. 


A Communist-led general 
strike called yesterday to protest 
against police repression and to 
demand the resignation of 
Portugal's right-wing • Govern- 
ment appeared to have had little 
effect on preparations for the 
visit. 

The Pope comes an a time 
when Portugal’s economy is 
troubled and its politics tense; 
As- > predominantly Roman 
Catholic nation, the population 
Is turning out en masse to wel- 
come the Pontiff in what, to 
many, seems to be a welcome 
respite from, political or finan- 
eial frustrations. • 


Gold could finance deficits if liquidity supply slows 


A COURT in Seville has pot an 
injunction on, a paster produced 
by the Andalucian branch of 
the National , Empl oyers’ F eder- 
ation JCEOE) which it con- 
sidered damaging to : the 
Socialist Party,, . 

Tbe irijuacti bn followed pro- 
tests by -the Andalucian Com- 
munist and Socialist- parties, 
and underlines both the grow- 
ing bitterness of; the week-old 
Andalucian parliamentary elec- 
tion campaign and the involve- 
ment of the CEOE in politics. 

. The . : assertiveness : of the 
federation; beaded- by Sr Carlos 
Ferrer , Salat,' has been, -one of 
the most notable features of the 
Spanish political scene since 
hurt autumn. The CEOE has 
been highly critical . of the 
government of Sr Leopold© 
Calvo Sotelo. •- Sr ‘Ferrer Satet 
has sought several times to 
make tighter control of public 
spending arid adoption of mare 
conservative policies, conditions 
of his support .for tiie govern- 
ment. . " 

. '. The CEOE campaigned pour- 
ing in large sums of money, in 
the - Gal id .In - -parliamentary 
.elections last. October. 

. The federation via its local 
, organisation, tSe'CEA, has been 
even more active in Andaluria, 
where tiie politi cal stakes are 
higher. .. The . elections to the 
first" Andalucian parliament, 
due ■ :ori.3tejr -23. . are- being 
treated as a dress .Tehearsal, f or 


BY MARTIN TAYLOR IN MONTREUX 


COUNTRIES MAY Intensify 
their efforts lo mobilise their 
gold holdings to finance balance 
of payments deficits. Dr 
Giovanni Magnifico, economic 
counsellor of Che Bank of Italy, 
told the Financial Times Con- 
ference on Gold and the Inter- 
national Monetary System here. 

He told the conference, which 
is run in association with The 
Banker , that this could happen 
if the supply of international 
liquidity from other sources 
klowed down. This might he 
implied by the re-absorption of 
the Opec surpluses and by the 
restrictive stance of monetary 
policy in the U.S. 

Dr Magnifico suggested 
several ways in which the official 
role of gold might be expanded. 
Least ambitiously, there might 
be an understanding in principle 


on the part of main central 
banks and gold producers to 
consider joint action to curb 
marked overshooting by the 
gold price, up or down. 

More radically, gold might be 
re-instated in a universally 
accepted official role, as a 
primary reserve asset into which 
currencies would have to be 
convertible. " To start with, gold 
would be the main reserve 
asset, but one would aim to 
Increase the weight, alongside 
gold, of collectively managed 
monetary instruments such as 
the SDR and the ECU. 

This could also be achieved 
if the dollar became an anchor 
of stability, to which other 
countries would find it attractive 
to peg their currency. 

"Finally. another ' path 

through which the world might 


reach a viable set-up in inter- 
national monetary relations is 
the formation of economic and 
monetary groupings.” In this 
case gohi would play a regional, 
rather than a world, rofe. 

Mr Samuel Britton, principal 
economic commentator of the 
Financial Times, told the con- 
ference that a successful gold 
standard would be no more than 
a method of controlling the 
quantity of a particular kind of 
money. 

He pointed uut the difficulties 
both oF measuring the effective 
quantity of money under a paper 
standard, and of controlling Us 
growth in a non-in nation ary 
way. 

“ The defects of monetarism. 
in the narrow sense of the fixed 
rule of domestic money supply, 
are that it concedes loo much 


power to official intervention, 
under-rates .the influence of 
competition in providing 
monetary substitutes, and takes 
official statistics far too much 
at their face value." 


However. Mr Brittan rejected 
calls for a new gold standard. 
In an apparent reference to 
Professor Arthur Laffer, who 
told the conference on Tuesday 
that the U.S. was moving 
towards the convertibility of the 
dollar into gold, Mr Brittan 
said that U.S. "supply-side 
gold standard advocates” 
claimed too much for the gold 
standard. 


Gold and the 
International 
Monetary 
System 


"They look around at all the 
headline economic problems — 
high real interest rates, the 
unpleasant choice between 
higher taxes and. public spend- 


ing cuts In countries With ex- 
cessive government ‘deficits, 
and. above nil, recession and 
unemployment— and offer the 


gold standard as a. nostrum in 
.the way . that others offer 
nationalisation, import controls 
or deficit finance." 

He said that a return To gold 
would only ease tbe transitional 
pains associated with reducing 
inflation if it were to transform 
inflationary expectations. “Com- 
modity or gold backing for an 
official currency will not be 
enough either. 

Mr Paul Bareao, economic 
advisor to the Mirror Group 
of newspapers in Britain, 
argued for a convertibility 
which "could be limited to 
inter-central bank operation but 
would have to be genuine, not 
symbolic; The re-emergence of 
official, albeit flexible, prices 
for gold would inevitably re- 
quire official intervention In the 
free markets. It would not be 


intervention to protect ' and 
maintain a wholly artificial 
price. 

Mr Bf einhard Carstenscn, gen- 
eral manager of the Dresdner 
Bank, described iris - bank’s 
entry into the gold market In 
The mid 1970s and it philosophy 
of keeping gold business linked 
with its larger interests in for- 
eign exchange. 

This -point was taken up .by 
Mr Donald Cameron, senior 
vice-president of the Ohase 
Manhattan Bank, who described 1 ' 
the use of the gold futures mar- 
ket as a way to produce cheap 
dollars. "We -saw gold as an- 
other currency and looked' to. 
ihe arbitrage possibilities/.' A 
gold trading desk is just an-. 
other way to enter the markets 
when we think they have lii- 
terest rates wrong." / 


general elections likely: to be 
held in .November. : Without 
backing any. particular . party, 
the Employers' 1 Federation is 
carrying nut- a determined cam- 
paign to discredit the Left-wing 
parties. The paster a "wirfch -was 
the .subject; of .the.' court in- 
junction, depicts an apule with 
a lance maggot crawling out 
alongside the Socialist symbol 

of a dosed fist Against that are 
the . words “ They .fake 
moderation." 

The dear aim .nf the poster Is 
to discredit the' Socialist Party 
and .brand it as one and the 
same as the Communist, so as 
to polarise the election Into a 
Left Right contest, Andaluria 
is one of the regions where the 
Socialists -have- the greatest 
chance of victory. It is the 
! power . base of Sr Felipe 
Gonzalez, : the Socialist party 
leader, and his right-hand man. 


FINANCIAL TIMES, pnbllshtd dailf 
.«x«Ri Sunday* pntJ holidays. U.S. 
«i/btCnpt>on rat»t 5385.00 par annum. 

Saeond Cits* postMa . paid' it N«w 
Ywfc. N.Y., and at additional mafltna 
-cantraa* 







,ia y n 








Canadian 
bank lending 
restrictions 

By Jim Rink in Ottawa 


Setback in House for 
budget compromise plan 

BY ANATOU KALET5KY IN WASHINGTON 


Sohio find 
in Gulf of 
Mexico 

By Ray Oafter, Energy Editor 


Attorney-General’s 
‘tax shelter’ scheme 


1 BY REGINALD DALE, (15. EDITOR IN WASHINGTON 


Anti-trust 
Bill helps 
shipping 




CANADA'S Inspector General 
of Banks has asked the coun- 
try's banks not to lend more 
than 50 per cent of their capital 
to any single customer. 

The federal Government is 
monitoring all loans of more 
than 20 -per cew of a bank's 
capital, Mr William Kennett, 
the Inspector General, told a 
special committee of the Cana- 
dian House of Commons on rho 
first day of an. investigation 
into bank profits. 

The - announcement of the 
moves comes as some financial 
observers are predicting that 
loan losses by Canadian Chart- 
ered Bank mil almost double 
this year. 

While the Canadian banking 
system is not in danger of col- 
lapsing. it is marked by 
"fragility.” Mr Kennett, who 
was the first witness called, 
testified. 

Before the hearings began, 
Mr Robin Cornwell. McCarthy 
Chanties' bank analyst who’ is 
also a special researcher for 
the Commons committee, re- 
leased a report predicting that 
actual Joan losses of ibe five 
major Canadian banks in the 
year ending October 31 will be 
C$1.45bn (£674mj. nearly 

double the C$773.6m in the 
1931 fiscal year vnd four times 
the level in 1978 and 197IL 

Mr Cornwell also predicted 
that non-current loans— those 
on which interest is not being 
paid — will decline to C$5.3bn 
by the end of fiscal 19S2 from 
C$1. 8m at rhe end of fiscal 1981. 

While the ceiling imposed by 
Mr Kenner is not legally en- 
forceable. Ottawa's request is 
being heeded by the banks 
which are subject to federal 
law. 

He would not say which banks 
have loans which might exceed 
the limit but. during last sum- 
mer’s takeover fever, individual 
banks approved loans to com- 
panies seeking to buy other 
groups in the range of 75 to 
100 per cent of the bank's 
capital. 

At the end of February, the 
latest month for which data is 
available Canada's chartered 
banks had capital and reserves 
totalling C$I2.9bn. of which 
CSll.Sbn was shareholders 1 
equity and CSl.lbn was 
reserves losses. 

Subordinated debentures, 
which now total C$3.7bn, are 
not considered -part of a bank's 
capital, but Mr Kennett is drink- 
ing about including this amount 
in the system’s capital base. 


THE HOUSE of Representa- 
tives has voted overwhelmingly 
for a costly mortgage subsidy 
scheme for first-time home 
buyers and has repudiated the 
budget compromise agreed last 
week between President Reagan 
and the Senate budget count- 
tee. 

The moves underline the prob- 
lems facing the President in 
trying to cut the U.S. budget 
deficit in an election year. 

The mortgage subsidy scheme, 
which would cost Slbn <£546m) 
in ihe current fiscal year and 
about another $3.5bn in ilic next 
seven years, was strongly op* 
posed by the President and Mr 
Robert Michel the House 
minority leader, but was passed 
by 349 votes to 55. 

This majority would be big 
enough to over-ride a presiden- 
tial veto if it was matched by 
similar support in the Senate. 

The Senate banking commit- 
tee has already approved a 
slightly smaller less generous 


subsidy scheme by a vote of IS 
(o 0. Thus the chances of a 
subsidy scheme of some kind 
being enacted arc considerable. 

The House scheme, which was 
passed late on Tuesday, would 
reduce mortgage costs by 
between 4 and 6 percentage 
points for lower and middle 
Income buyers of new homes. 
Its proponents believe that it 
would create 140,000 jobs by 
the summer and that its 
budgetary cost would be 
negligible because of the addi- 
tional tax revenues generated by 
this reflation. 

President Reagan disagrees 
sharply with this assessment, 
stressing that no new spending 
programmes should be intro- 
duced when tbc highest econo- 
mic priority is to reduce budget 
deficits. 

However, It Is uncertain 
whether he would accept the 
political opprobrium of trying 
to veto what is bound to he a 
popular measure in the middle 


of a recession. 

In another political setback 
for President Reagan's econo- 
mic programme, Republican 
Party leaders in the House of 
Representatives have announced 
that they are strongly opposed 
to a budget compromise passed , 
last week by the Senate budget j 
committee, with the President's j 
endorsement. 

A key element of this plan, 
which would reduee the budget 
deficit to SlOtibn in 1983, and 
to S42bn by 2935. is a $40hn 
"saving" on social security 
pensions. 

Mr Michel has told the Presi- 
dent tbat Republican congress- 
men cannot accept the Senate 
proposal and that social 
security has to be “taken right 
off the table” before they start i 
to discuss a revised budget. 

Republican congressmen also 
want larger cuts in defence 
spending and smaller tax in- 
creases than tbose proposed by 
the Senate, 


STANDARD OIL of Ohio, a 
British Petroleum subsidiary, 
has made a major oil and gas 
discoverj’ in ^he Gulf of 
Mexico. 

It is the first big find on off- 
shore licences awarded last 
October. Sohio paid $133.7m 
(£73m) for the 2.5hS-?.cre dril- 
ling concession. In addition it 
agreed to a royalty tax of 15.66 
per cent. 

Sohio’s discovery was made in 
the prolific Delta area, offshore 
Louisiana, 

Mr Richard Bray, president 
of Sohio Petroleum, described 
the find as "extremely 
encouraging.” 

The discover/ coincides with 
a report from the Petroleum 
Industry* Research Foundation 
which shows that large inte- 
grated companies such as Sohio 
drill about II per cent of the 
exploration wells in the U.S. 
But they contribute some 43 
per cent to newly discovered oil 
and gas reserves. 


ANOTHER MEMBER of the 
Reagan Administration yester- 
day became the focus of Wash- 
ington publicity that he can 
onlv. find unwelcome. 

The Washington Post 
reporter on its front page that 
Mr William French Smith, the 
Attorney-General, had per* 
sonaiiy invested SI 6.500 
(£9.0161 in 3n oil and gas "lax 
shelter" late last year that gave 
him about 566,000 in lax deduc- 
tions. 

Th e Post said the figure was 
at least twice tbat permitted by 
a current Internal Revenue 
Service -uiing. The wealthy Mr 
French Smith and his partners 
apparently relied on a tax 
opinion from a Las Angeles law 
firm that say's it hopes to beat 
an IRS court challenge, although 
it warns that "there are risks 
and uncertainties on a number 
of rax issues." 

The i-nny is that Mr French 
Smith, as Attorney-General, rep- 
resents the IRS in court and is 
supposed to defend the federal 


Santa 


— P ■ — — - i tmu iMci-.ca. j supposed to oetend uie ie 

Kendall in Quito reports on the uncertain outlook for the country’s economy 

Oil exploration key to Ecuador’s future 


Government in challenges to 
IRS actions and rulings, such as 
the one in question, the Post 
said. 

The law firm believes that the 
ruling, which challenges the 
basic concept of the tax scheme 
involved, has been superceded 
bv a subsequent Federal 
Appeals Court decision in Cali- 
fornia. 

The Post’s revelations, which 
it said were based on 200 pages 
of confidential documents, came 
the day after Mr Raymond 
Donovan, the Labour Secretary, 
appeared before a Federal 
Grand Jury investigating 
charges of wrong-doing against 
him. 

He is alleged, as an execu- 
tive of a New Jersey construc- 
tion company, to have been 
present at a 1977 lunch during 
which another company execu- 
tive banded an envelope con- 
taining at least 52,000 in cash 
to a local union leader. Mr 
Donovan has denied any wTong- 
d oing. 


WHEN OPEC last met in Quito 
nearly eight years ago. 
Ecuador's earnings from crude 
oil had just made a spectacular 
jump and its economy was 
taking off. The euphoria of 
that has completely disappeared, 
and Ecuador hosts the Open 
conference starting on May 20 
with more concern about the 
world oil market than most of 
its fellow members. 

As development projects are 
slashed and the foreign debt 
mounts higher, the state oil 
corporation. CEPE, is trying 
desperately to maintain Opec's 
official price of $34.25 (£19) a 
barrel for long-term sales con- 
tracts. Spot prices have im- 
proved slightly, from $30.80 a 
barrel to $32.14 for a recent 
Colombian sale, but most of 
Cepe's crude goes to Uruguay, 
Brazil and Korea. 

As yet, no agreement on 
prices for the second quarter 
has been reached. No doubt 
this will lead Sr Eduardo 
Ortega, the Energy Minister, to 
seek support from his col- 
leagues, while Venezuela has 
already publicised Ecuador’s 
plight and offered help. As a 
last resort, Sr Ortega says that 


Venezuela would undertake to 
refine Ecuadorean crude and 
market it. 

Though Ecuador only exports 
some 100.U00 barrels a day, 
crude sales brought in 61 per 
cent of total export earnings in 
1081. Oil also accounts for 
over a third of the Govern- 
ment's income, and the 1982 
national budget has already 
been pared to the $34 pnee 
level. Any further setback in 
prices or export volumes will 
have a drastic effect on this 
year's investment plans, and 
exacerbate President Osvaldo 
Hurtado's considerable political 
problems. 

The public foreign debt is 
expected to pass the $5.5bn 
mark by the end of 19S2, in- 
cluding new loans of $400m 
required to balance the budget. 
With exports or about $2.5bn 
and international reserves under 
£5O0m this leaves little leeway, 
particularly as Ecuador has ihe 
bad luck to export other com- 
modities — cocoa, coffee and 
bananas — which are also 
plagued by marketing problems. 

Spot sales made over the past 
month have reduced crude 
stocks to manageable volumes— 


OPEC 

IN 

CRISIS 


ECUADOR 


This is the fifth article in a series 
examining the effect of pressure on 
oil prices in selected producing 
countries. 


under a million barrels — and, 
once new storage tanks are 
built, Ecuador will have greater 
flexibility. The Government has 
cut output to 200,0(10 b/d (last 
year's average was 215,000 b/d). 
but Cepe is planning to bring in 
new fields producing 25,000 b/d 
before the end of the year. 
Another 25,000 b/d will be 
added in 1983 if all goes well, 
keeping exports steady for a 
short period. 

‘ The longer term outlook is 
very uncertain. Cepe's first 
drilling in the Gulf of Guaya- 
quil, using a Mexican offshore 


platform, has struck oil at 
12,000 ft but officials are being 
very cautious in their forecasts 
and it may not prove commer- 
cial. Whatever the result, the 
discover)* is encouraging because 
only natural gas deposits have 
been found in this area up to 
now. Cepe is also starting 
exploratory drilling in the south- 
east Amazon region, not far 
from Peruvian fields. 

The state corporation’s finan- 
cial and technical resources put 
serious limitations on explora- 
tion activity, however. Two 
foreign companies — Texaco and 
Clyde Petroleum — are teamed 
with Cepe in exploitation ven- 
tures, and a third — YPF of 
Argentina— has just pulled out 
after failing to make any viable 
discoveries. The Transnational 
are wailing for new exploration 
contracts, first discussed by the 
military government over five 
years ago and put to Congress 
by the current administration. 

Large-scale oil exploration is 
vital if Ecuador is to remain 
an oil exporter— and Opec mem- 
ber — after 1985. The Govern- 
ment says the main Amazon 
reserves ore as low as 650m 
barrels, though Texaco's esti- 


mates are higher. An indepen- 
dent company has been called 
in to do a study. 

Despite last year's fuel price 
increases, petrol is still nowhere 
near the international average 
and consumption continues to 
rise at over 12 per cent a year. 
To cover domestic needs, slate 
refining capacity is to be ex- 
panded by *25.000 b/d as soon 
as possible, while another 75,000 
b/d refinery planned for the 
future would absorb the remain- 
ing output of crude. 

This gloomy panorama is 
further darkened by problems 
in other areas of the economy: 
the private sector lias been 
clamouring for measures to 
rescue industry from the dol- 
drums, and the trade unions 
want a 75 per cent increase in 
the minimum wage. Even after 
•partial devaluation and the 
establishment of a multiple ex- 
change system with the sucre 
varying between 25 and 30 to 
ihe dollar, the free market rate 
is still around 45. The Govern- 
ment has banned vehicle and 
many luxury imports to reduce 
the current account deficit, and 
is making impassioned appeals 
for national austerity. 


President Hurtado: political 
problems. 

The very high oil-based 
growth rates of the 1970s and 
the slump back to a 4 per cent 
level — perhaps less this year — 
have brought a curious schizo- 
phrenia: though it is widely 
agreed that Ecuador must re- 
duce its oil dependence, hopes 
are firmly pinned on another 
major oil discovery. By taking 
so long 4o come up with an 
attractive exploration contract, 
however, the chances of such a 
discovery recede further into 
the future. 


MOVES TO shield international 
shipping lines against the full 
force of U.S. anti-trust laws have 
ben taken a step further with 
the approval of a regulatory 
reform Bill by a House of Rep- 
resentatives committee. 

But, since there is also a more 
extensive Bill before the Senate, 
shipping experts expect a com- 
posite measure to be drawn up 
this vear. The two Bills are simi- 
lar. but differ as to how rate- 
setting conferences should be 
regulated. 

The House Bill, introduced by 
Representative Mario Biaggi, 
was approved this week by the 
House Merchant Marine Com- 
mittee. It is now to go before 
the Judiciary Committee. 

The Senate Commerce Com- 
mittee recently passed the BUI 
brought in by Senator Sleds 
Gorton, which tends to favour 
the open conference systejn. 
Under that measure, lines 
would be able io join rate- 
setting groups without the 
approval by other members 
required in the closed, system. 

The Biaggi Bill, co-sponsored 
by Representative Walter B. 
Jones, envisages approval of 
closed conferences, which have 
been hindered by U.S. anti-trust 
law, although they arc common 
in trade with Europe or the Far 
East at its hub. 

Last autumn, shipping com- 
panies trading across the North 
Atlantic agreed lo a So 1.4m 
settlement of a civil anti-trust 
suit in the U.S. Executives 
then said they detected a softer 
line in Washington on anti-trust 
shipping policy. 

The present session of Con- 
gress will end in September. 
The industry hopes that a com- 
posite Bill can be produced by 
both houses by the end of July. 

The Reagan Government has 
announced its willingness to 
have shipping conference activi- 
ties released from anti-trust 
regulations, but international 
ship-owners are uncertain as to 
that attitude will be put into 
practice. 


Move in House to 
limit Salvador aid 

AID TO El Salvador would be 
limited to S75m (£41ra) in a 
new Caribbean Basin plan 
approved by two House of Rep- 
resentatives foreign affairs sub- 
committees. AP reports from 
Washington. 


FT PAYS TO LISTEN. 

CohmbttfideasfeU on deaf ears 
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perry. 

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This takes an attentive, imagin' listening well ignites new insights, 


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Financial Times IThnisday - J3. 1?82 


OVERSEAS NEWS 



Africa lifts 


on plans 
race reform 


SY J. O. F. JONES IN CAPE TOWN 


FUNDAMENTAL changes in 
South Africa's system of gov- 
ernment, in chiding a powerful 
executive presidency and the 
inclusion of coloured (mixed 
race) people and Indians in 
both the legislature and execu- 
tive — but no change in repre- 
sentation for the black majority 
— have been put forward in 
Cape Town in the long-awaited 
report of the Constitutional 
Committee of the President’s 
Council. 

This document is certain to 
become a basic text in the in- 
tense political debate between 
South Africa's “ reformists ’* 
and conservatives. The recom- 
mendations from the Presi- 
dent's Council committee are 
such tliat they will be bitterly 
rejected by White right wingers, 
many of whom have recently 
parted ways with the ruling 
National Party. 

But they are also unlikely to 
pcss muster with the opposition 
progressive Federal Party 
(PFP) which is committed to 
finding a constitutional role for 
the blacks and is also wary of 
an over-powerful presidency. 

It remains to be seen whether 
the majority of coloureds and 
Indians will be attracted by the 
proposals, revolutionary though 
they may seem against the' back- 
ground of the white suprema- 
cist political history of South 
Africa. For the 20m blacks 
there is nothing. 

However, these constitutional 
recommendations are directly 
in line with the reformist 
National Party thinking since 
1917 and it must be assumed 
Mr P. W. Botha, the Prime 
Minister, win adopt them, al- 
though he may have trouble 
carrying them through 

The President's Council docu- 
ment. which was prefaced last 
■..'iih a detailed study for 
‘h v J revision for local govern- 
if /a? work of the Con- 
Committee, chaired 
V: 3" Drn \V or rail, a politi- 
and former 
^ politician, whose 
indue a ?e i« clear from the 
academic language and refer- 
ences of the report It argues 
tbat: 

Q South Africa urgently needs 
reform. 

O A single political system for 
South Africa could not work 
“as a successful democracy” 
if it included blacks, but it 
would be possible if it included 


coloureds (2.5m and Indians 
0.8m). 

• But each community should 
run and control areas of par- 
ticular communal interest The 
proposal is therefore summed 
up as M segmental autonomy.” 

• To rule this “supra-ethnic 
society, it is essential to have a 
strong nan-parliamentary execu- 
tive. The President's Council 
therefore proposes a President 
indirectly elected by an elec- 
toral college for seven, years 
who would in turn appoint a 
“premier” and a cabinet (who 
would not be members of the 
legislature and would have no 
vote there? 

Except in its decision not to 
opt for a popular and direct 
election of the President,, these 
proposals are clearly reminis- 
cent of France’s GauHist consti- 
: u’ion: The President, it is pro- 
posed, should have the right to 
dissolve the legislature and can 
also submit issues to a referen- 
dum. 

In the South African context, 
’he bolder part of this scheme Is 
that the President would be ex- 
pected to appoint coloureds and 
Indians as well as whites to the 
supra-ethnic executive; this by 
itself makes it anathema to the 
Right 

The proposals refer to the 
controversial recommendations 
of a National Party plan of 1977 
(controversial in that they have 
been directly responsible for the 
recent split in the party) for 
representation of the three oom- 
mum ties on a proportional basis 
(that is, four-to-one) thus, it 
will be noted ensuring an over- 
all white majority at executive 
and legislative levels. 

The constitutional committee 
adds: “Although the committee 
considers (representation of the 
three communities on a strictly 
proportional basis) to be highly 
desirable, if not essential, in 
the long-term, the committee 
does not believe it appropriate 
at this stage to prescribe to 
the President precise ethnic 
ratios in respect of appoint- 
ments to his cabinet 

However, the proposals are 
remarkably silent on the most 
delicate aspects of such a 
system: The role (and composi- 
tion) of the legislature; the 
make-up of the electoral college 
which would choose the Presi- 
dent; and the nature of any 
balances or restraints on the 
power of the President. 


Robert King in Taipei explains why forecasts for the republic are gloomy 

Foreign markets depress Taiwan’s euphoria 


TROUBLES ARE being pre- 
dicted for Taiwan’s economy 
and industry over the next few 
months. The difficulties stem 
from the island’s reliance on 
external trade as the major 
source of its economic well- 
being. With major market coun- 
tries in recession, trade-oriented 
manufacturers, almost without 
exception, are shout on orders, 
with no relief in sight 
The trend in orders-an-hand 
appears to have been down over 
the last six months. Statistics 
from the Council for Economic 
Plann ing and Development 
(CEPD), a government body, 
indicate that manufacturers at 
the end of March bad -an 
average of L8 months of orders- 
in-hand, compared With 2.1 
months a year ago and 2.3 
months for the previous two 
years. 


According to the statistics, 
the Taiwanese machinery and 
electronics industries are the 
hardest hit, dropping from an 
average of 3.5 months and 2.9 
months of orders-in-hand during 
the first three months of 1981, 
to 2.3 months and 1.9 months, 
respectively, this year. 

Textiles are also down 
slightly, with IB months of 
orders in hand compared with 
last year’s first quarter average 
of 1.9 month's worth. 

No one is panicking yet over 
these figures, but the continuing 
downturn is bound to have a 
psychological effect on Taiwan's 
entrepreneurs and manufac- 
turers, who have still to recover 
from the euphoria of a decade 
of booming growth. 

The Gross National Product 
grew last year by about 5.5 per 
cent, and it is estimated that 


between 2 per cent and 3 per 
cent was contributed by the pri- 
vate sector — an enviable growth, 
figure for most developed 
nations. The Government has 
set a growth rate for GNP this 
year of between 7.5 and 8 per' 
cent, but, given current circum- 
stances, reaching this will be 
bard, if not impossible. 

An upturn in Taiwan’s econ- 
omy may not happen until the. 
fourth quarter at the earliest. 
This estimate is necessarily con- 
servative, because the island’s 
economy is pegged to that of its 
major foreign markets, notably 
the U.S. and Europe — where 
there are still few signs of an 
upturn. 

“It’s going to be upsetting,” 
said a foreign economist, of the 
next few months ahead. “People 
here are accustomed to growth, 
they measure themselves 


against Korea, Singapore and 
Hong Kong— the most success- 
ful economies in the world. 

“It will be traumatic because 
they’re not accustomed to it,” 
he continued. “If they don’t 
move toward modernising the 
industrial base— seriously mov- 
ing into high technology — they 
may really have trouble.’’ 

A government planner agreed 
that Ihe electronics industry,, 
which in recent years came 
second behind textiles as the top 
earners of foreign exchange, is 
in trouble so far this year. He 
said that the industry declined 
for the first time, by 3.3 per 
cent during the first quarter of 
this year. Manufacturers tradi- 
tionally have orders-in-hand to 
the end of the year by April or 
May, but this year the orders 
stretch only until July. 

Forty-five per cent of Taiwan’s 


output of electronic items are 
consumer products and another 
48 per cent are consumer-grade 
components — areas most 
affected by the world-wide eco- 
nomic downturn, be said. - 

Mr K C. Lee, of the CEPD 
said that he expects a shortage of 
jobs in industry for newcomers 
this summer and possibly lay- 
offs if the economic picture 
doesn’t brighten. 

Mr Lee said that “ file eco- 
nomic structure (of Taiwan) 
must be changed.” He added 
that the current recession may 
he a boon in' disguise to the 
island’s manufacturers, by giv- 
ing them the Incentive to 
modernise their plants and in- 
crease their research-and- 
development expenditures freon 
the current level of 0.63 per cent 
of Gross Domestic Product to a 
targeted 2 per cent by 199L 


Gulf seeks 
renewal of 
Egypt links 

KUWAIT— The Gulf States 
are “ searching for a basis ” to 
return Egypt to the Arab ranks, 
according to the Emir of 
Bahrain who has just com- 
pleted a three-day visit to 
Kuwait 

“From the bottom of our 
hearts, we are searching for a 
basis for Egypt's return (to 
the Arab fold) so that it would 
resume its role in the Arab 
world,” Sheikh Isa bin Salman al 
Khalifh told the right-wing 
Kuwaiti newspaper Al-Seyassah 
in an interview. 

He pointed out that the first 
phase of the U.S.-initiated Camp 
David peace accords between 
Egypt and Israel had been com- 
pleted with Israel’s withdrawal 
from Sinai, “and now remains 
the controversial second phase,” 
— the Egypt-Israei talks on 
Palestinian autonomy. 

In Cairo, the U.S. special 
envoy. Mr Richard Fairbanks 
met President Hosni Mubarak 
and other senior Egyptian offi- 
cials yesterday in an attempt 
to revive the stalled autonomy 
negotiations. 

Mr Fairbanks had meetings 
In Israel on Tuesday with the 
Defence Minister, Mr Ariel 
Sharon and the Opposition lead- 
er, Mr Shimon Peres. 

Both Egypt and Israel want 
to resume the talks bn auto- 
nomy 
Agencies 


Precarious ceasefire in Lebanese port city 


BY NOURA BQUST1ANY M BEIRUT 


A PRECARIOUS ceasefire 
seemed to be holding in the 
northern Lebanese town of 
Tripoli yesterday, after four 
days of fierce clashes between 
pro-Syrian factions and their 
local opponents. At least 60 
people died and 200 were 
wounded in the fighting - . 

The dashes reached a critical 
point on Tuesday when a force 
of several thousand men of 
Syria’s special defence squads 
was halted at Deir al Aiunar 
just east of Baalbek, in central 
Lebanon, according to security 
officials. Hectic contacts were 
made to prevent the force from 
advancing on Tripoli. 

The special defence squads 
which are known as followers 
the Syrian Preside rut, Hafez 
Assad’s brother Rifaat, were 


blamed for the daughter in 
Hama last year, when troops 
stormed hideouts of the Moslem 
Brotherhood - in the northern 
Syrian town. 

The conflict in Tripoli 
between an array of local 
groups, opposed to the presence 
of Syrian, troops of the Arab 
Deterrent Force and fighters of 
the Arab Democratic Party, 
another group backed by Rifaat 
Assad, broke out at the end of 
lest year. The local factions, 
joined forces as the Popular 
Resistance Movement end are 
said to be backed by a pro- 
Iraqi Palestinian organisation, 
the Arab liberation Front. 

President Elias Sarkis of 
Lebanon intervened on Tuesday 
and called on President Assad 


to help in containing the 
explosive situation. Palestinian 
military leaders, local figures 
and a former Premier, Mr 
Rashid Karameh, met to seek an 
arrangement that would stop 
the hostilities. 

Exchanges of rocket fire, 
shells mid grenades -that began 
last Friday, forced schools, 
businesses and banks to shut 
down an the town of 700,000 
people. Fighters positioned 
inside and outside the city 
exchanged heavy rocket and 
machine-gun fire until a joint 
security force composed of men 
from the Palestine liberation 
Organisation, Lebanese gen- 
darmes. representatives from 
the Popular Resistance and 
dements of the aH-Syrian deter- 


rent force patrolled the streets 
and took up positions to 
separate tile factions. Only 
sporadic shooting and sniping 
was reported yesterday. 

The left-wing newspaper As 
Safir, which has dose contacts 
with the Palestinians and left 
wingers, indicated that the 
ceasefire was delicate and 
likely to collapse if political 
issues remained unresolved. 

Both Government and Pales- 
tinian officials have said that 
Syrian troops would like to re- 
enter the town, from which 
they withdrew -after an uprising 
several months ago. 

In Beirut yesterday one per- 
son was killed and three were 
reported to have been wounded 
by an explosion near the sea- 
front offices of Iraqi airlines. 


India unhappy about World Bank report 


BY K. K. SHARMA IN NEW DELHI 


INDIA'S Finance Ministry be- 
lieves the World Bank is pre- 
senting an inflated and distorted 
picture of the country’s 
economic problems. 

Ministry officials feel especi- 
ally that the World Bank has 
overstated balance of payments 
difficulties in its report to the 
Aid India Consortium which Is 
due to met in Paris next month. 

Although no formal complaint 
has been made, Ministry officials 


in Delhi have expressed fears 
that the bank’s assessment could 
mislead other countries to 
believe that the Indian economy 
is weaker than is actually the 
case. 

Ihe Finance Ministry main- 
tains that India’s current 
account deficit through the 
1980s should be manageable, 
provided the flow of aid con- 
tinues at present levels. 

Their view is based on the 


increase in Indian oil produc- 
tion last year when, for the first 
time, more than 55 per cent of 
requirements were met from 
Internal sources and imports 
were limited to 16m tonnes. By 
1985, oil production should 
reach 70 per cent of require- 
ments. 

Ministry sources say the 
economy has improved because 
infrastructural constraints 
have eased and that this has 


resulted in cuts in non-essential 
imports and higher exports, 
although they acknowledge that 
tile trade gap remains wide. 
However, the payments picture 
'should improve in the medium- 
term. 

In its report, the World Bask 
salfi the Indian economy will 
have to rely increasingly on 
external finance through the 
1980s because of the large 
balance of payments gap and 
falling reserves. 


Thais pian 
9.9% rise 
instate 
spending 

By Our Bangkok Correspondent 


.THAILAND’S GOVERNMENT 
has approved modest 9.9 per 
cent increase in projected 
spending for fiscal 1983 starting 
October 1. compared with a 25 
per cent rise this year. 

. Citing the country’s straitened 
economic circumstances as a 
result of recession, the Finance 
Minister, Mr Soman ai Hoontra- 
kul. said: “We will have to 
tighten up our belt a little 
more.” 

Proposed expenditure for 1983 
is lTTbn baht ( £4.5bn ). 
Revenues are forecast at 
baht 151bn and officials said the 
difference would be met mostly 
through loans from local com- 
mercial banks and through the 
issue of bonds. 

A conspicuous feature of the 
proposd spending is a 30 per 
cent rise in funds allocated to 
debt repayments, which will 
take up 15 per cent of expendi- 
ture. 

Debt 

A senior Thai said the figure 
was not worrying as yet as the 
bulk of the repayments were for 
domestic debts. Foreign debt 
servicing would amount to 
between 12 and 13 per cent of 
export earnings, and the alarm 
bells will not start ringing 
unless the figure reaches 20 
per cent 

The Government is concerned 
about the failure of revenues to 
meet - targets during the first 
half of the current fiscal year, 
mainly because of a general 
economic slowdown. 

Officials have made it known 
tbat there are no immediate 
plans to increase taxes to try to 
make up the shortfall. The 
Government will concentrate 
instead on tightening up tax col- 
lection. 

Defence spending is due to 
rise by about 12 per cent, 
roughly equal to the level of 
inflation last year. 

Meanwhile a report prepared 
by the Asia division of the Bank 
of America has - predicted that 
Thailand’s economic growth 
this year and next will not equal 
the rate of nearly S per cent 
achieved in.lBSL The report 
pointed to growth of up to 7 per 
cent, which it said wa s 
"healthy.” 


THE FALKLANDS CRISIS 


Argentines 


BRITISH TRADE IN PRO-ARGENTINE VENEZUELA 


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cy. 


By H-jgh O'S'.-Jughnessy and 

jimmy Suras 5 b Buenos Aires 

C0??TR0V7.SSY is continuing 
in Argentina over the degree 
of support the armed forces 
shov'd accept from the Soviet 
Union in their dispute with 
Britain. 

Many hawks inside and out- 
side Government are advocating 
acceptance of any help offered 
by Moscow while others are 
saying that Argentina should 
keep its distance from Moscow. 

The English-language daily, 
the Buenos Aires Herald, in an 
editorial entitled "Colonies and 
satellites” yesterday com- 
mented: “If the Malvinas crisis 
is about the denunciation of 
colonialism in the South 
Atlantic then help from the 
Russians would be jumping 
from the frying pan into the 
fire.” 

According to the usually well- 
informed commentator, Sr Jesqs 
Iglesias Rouco, the Argentine 
military is bracing itself for a 
prolonged war with Britain 
lasting between 45 and 60 days 
if the latest mediation efforts by 
Sr Perez de Cuellar fail. 

Writing in the conservative 
La Prensa, Sr Rouco says that, 
iu such a war, Argentina would 
(have no choice hut to seek 
alternative sources of external 
military aid — a prospect that is 
causing considerable worry to 
U.S. officials since it would 
inevitably further undermine 
Washington’s influence in Latin 
America. 

Argentina has received offers 
of military assistance from 
Venezuela and Peru, although 
it is generally felt in Buenos 
Aires that this would be in- 
sufficient to cope with a drawn- 
out war 

Some officers in Buenos Aires 
are arguing privately that 
Argentina should look to the 
Soviet Union for more sophisti- 
cated weapons than that offered 
by other Latin American conn- 
tries, if and when the country’s 
armed forces began to suffer 
severe damage at the hands of 
the task force. The view is that 
Argentina should continue 
fighting rather than risk 
humiliation. 

Arms sales would be tempting 
to Moscow as a way of re- 
dressing its trade imbalance. 
The Soviet Union accounts for 
over 70 per cent of Argentina's 
grain exports, but sells very 
little in return. The trade ratio 
is about 36 to one in favour of 
Argentina. 



eads down and 



for the best 


BY KIM RIAD IN CARACAS 

WE'VE KEPT our heads down 
since it started, but we can’t 
go on like this forever, a 
British businessman said this 
week in a comment on the im- 
pact which Venezuela’s strong 
pro- Argentine position over the 
Falkands crisis has had on 
Anglo-Venezuelan trade. 

British-owned companies 
firmly based In Ven ezuela, 
traders dependent on XJK goods, 
British companies seeking a role 
in the country's major develop- 
ment projects and bankers who 
have been involved in billion- 
dollar loans are all suffering 
from a severe case of the jitters. 

At stake are 370m (£3Sm) In 
British investments, more than 
10 per cent of Venezuela’s 
$12.5bn imports, the chance of 
winning a share of multi- 
nrillion-dollar engineering and 
construction contracts, and a 
hefty share of Venezuela’s 
$19.1bn foreign debt 

While there has been more 
rhetoric than substance in 
Venezuela’s anti-British postur- 
ing, businessmen are worried 
about what could happen If the 
Falklands crisis deepens. They 
seen an ominous example in the 
Venezuelan Government's 
decision to suspend the pur- 
chase of 24 -British-built Hawk 
aircraft 


The defence lawyer for three 
British journalists, held In the 
southern Argentine town of 
Ushuaia, yesterday lodged an 
appeal against a derision 
denying the men bail, Hugh 
O-’Shaugnessy reports. The 
three are Ian Mather and 
Tony Prime o fthe Observer, 
and Simon Winchester of the 
Sunday Tones. The Argentine 
regime has assured the United 
Nations Secretary - General 
that their rights will be safe- 
guarded under the law. 

This concern has not been 
lessened by ambiguous state- 
ments from official sources, in- 
cluding President Lais Herrera 
Campins, and the one-sided, 
pro-Argentine stance of the 
Venezuelan media. But despite 
threats by ultra-nationalist trade 
unions to boycott British ships 
in Venezuelan ports and' to ban 
British Caledonian flights or 
block commercial communica- 
tions, it has been business as 
usual since the crisis erupted. 

The larger established com- 
panies, such as British American 
Tobacco’s wholly owned Vene- 
zuela subsidiary, CA Cigarrera 
Bigott Sues, has been quietly 
marketing Venezuela’s . most 


popular cigarette, “Belmont,” 
and showing as low an un- 
British a profile as possible. 

Both Eritish and Venezuelan 
traders dealing in UK goads 
have been looking into alter- 
natives should a ban be im- 
posed. One trader in medical 
goods says he has already set 
up a three-way contingency plan, 
under which his goods would be 
sent from the UK to New York 
and thence to Caracas, should 
direct imports be halted. 

Ferhaps the British companies 
feeling the crisis most are the 
engineering, construction and 
specialised services companies 
who have laboured to win a role 
in major industrial contracts. 
They fed that the Falklands 
crisis has seriously set back 
much of their efforts. 

British bankers, who have 
large commitments and want to 
maintain a stake in the pros- 
perous Venezuelan market say 
they have been victims of a 
“ping-pong” effect. Their home 
offices, just as jittery as they 
are, have hurt their position by 
expressing doubts about Vene- 
zuela’s future. By way of 
example, Standard Chartered’s 
recent decision to withdraw 
from a $200m credit for Vene- 
zuela’s Banco Industrial, re- 
portedly irked Venezuela and 


harmed the British bankers 
here. 

British businessmen at all 
levels, from indsutriaJists and 
traders to engineers and 
bankers, are openly unhappy 
that they have been placed in 
such an uncomfortable position 

Their U.S. and other Euro- 
pean colleagues, who feel they 
have been dragged into the 
crisis, are no happier. For the 
U.S., the impact is strongest 
since U.S. business holds close 
to 60 per cent of Venezuela’s 
$1.8bn foreign investment, 
about $5bn in trade and a major 
stake in large construction 
contracts. 

In such a gloomy environ- 
ment, the only consolation 
for foreign businessmen 
is Venezuela’s overwhelming 
dependence on imports for basic 
goods, such as food staples. 
One such basic, according to 
most Venezuelans, is Scotch 
whisky. Venezuela, imports 
about 330,000 gallons of whisky 
a year, making it one of the 
world’s largest consumers. 

*' The only way that 
Venezuelans could make a really 
convincing show of support for 
Argentina would be to ban 
whisky imports,” said one 
businessman. 



; Roger Taylor 

Captain Frank Grenier of HOIS. Liverpool, pictured in front 
of the Type 42 destroyer’s Sea Dart missile system after 
accepting the ship Into Royal Navy service at Plymouth 
yesterday. 


The UN’s quiet pursuit of peace by the East River 


BY PAUL BETTS IN NEW YORK 

A SMART restaurant, with 
glass-covered veranda, called 
La Bibliotheque overlooks the 
green-blue United Nations 
tower by Manhattan’s East 
River. Zt is the perfect vantage 
point to observe at a civilised 
distance, the frenetic comings 
and goings at the UN of the- 
past few days. 

The only disadvantage is that 
it is impossible to catch from 
your seat the mutterings of the 
Argentine or British envoys as 
they rush with their aides in 
and out of the glass palace, 
surrounded by a swarm of 
cameras and reporters — push- 
ing, pressing, heaving, losing a 
shoe on occasions— for the 
slightest clue on the current 
Falkland Islands peace negotia- 
tions. 

But tbat is not a big dis- 
advantage. If there is one truly 
remarkable factor in the matter, 
it Is the discretion, the secrecy, 
or, as one Argentine diplomat 
put it, "the subterranean 
quality ” of the efforts for peace 


of Sr Javier Perez de Cuellar, 
the UN Secretary-General. 

So secret have the talks been 
that one veteran UN official was 
moved to say: “Whatever their 
outcome, they will make history 
here.” For an establishment 
as large and varied as the UN, 
where gossip and leaks have 
traditionally helped to offset 
the glass building’s soporific 
qualities, the degree of discre- 
tion that has surrounded the 
talks has been highly unusual. 

For some, this has been a 
source of enormous frustration. 
Not only is that so for corres- 
pondents— who speed their 
time feeding on rumours from 
other journalists or apparent 
indiscretions from diplomats, 
which for the most part are as 
unreliable as the rumours — but 
also for some officials. But, for 
many, the wall of silence is the 
best thing that has hapeaed at 
the UN for decades. 

The consensus is that, if the 
Secretary-General is to fiuceed 
in his complex task, he can 


only do so by maintaining bis 
exemplary practice of quiet 
diplomacy. For that matter, he 
has the support not only of the 
♦wo parties directly Involved in 
his efforts, but also of the other 
members of the UN Security 
Council and of most of the dele- 
gations here. 

There is little doubt tbat Sr 
de Cuellar’s efforts constitute 
the best chance of a swift end 
to the fighting over the islands. 
Even the Eastern European 
countries, which have by tradi- 
tion preferred the Secretary- 
General to act on the basis of 
a formal mandate from the 
Security Council, have Iain ex- 
tremely low. have given, every 
sic* of supporting him and have 
avoided placing procedural 
obstacles in his way. The Irish, 
■who had earlier threatened to 
take the whole issue to the 
Security Council, have also kept 
a low profile in the UN this 
■week, to avoid causing problems 
to the Secretary-GeneraL 

It is generally felt that a for- 


mal gathering of the council af 
this delicate stage in the talks 
would lead to nothing more 
than an acrimonious shouting 
march, and that the Security 
Council will be called into 
action when it is known — prob- 
ably in the next few days— 
whether Sr de Cuellar has been 
successful or not. 

Of all the parties, the most 
tight-lipped has been the Argen- 
tine one, especially -Sr Enrique 
Ros, its chief envoy and the 
Deputy Foreign Minister. When 
Sr de Cuellar’s initiative -began 
to gather momentum last Satur- 
day, Sr Ros would slip in and 
out without saying a word, at 
times avoiding the press at the 
front door ‘by sneaking down 
to the UN underground garage 
before speeding out of the com- 
plex. 

He spoke a few words for the 
first time on Tuesday evening — 
the most frenetic day in the 
talks so far — when he returned 
for the second time and said 
with a grin: “I am 'bringing 


back very interesting answers.” 

Later, in a day when things 
started to look very bad, Sir 
Anthony Parsons, the chief Bri- 
tish delegate, said: “We are 
m a k i ng progress again.” 

Sir Anthony has been less of 
a dam; but just as vague when 
it came to details. He also has a 
habit of cracking the odd joke 

The Argentines also hold 
briefings, bat you won’t find 
British journalists there— nor 
will you find Argentine corres- 
pondents at British briefing ses- 
sions. As for the secretary-gen- 
eral, he too has a most charming 
way of saying very little. He 
says such things as : “I am en- 
couraged" or "I need a few more 
days.” 

What 3s dear far that Ms 
.efforts hinge on one crucial 
issue. Although most of Ms 
talks have dealt wito procedural 
problems to do with the cease- 
fire, the withdrawal of the 
Argentine forces and the British 
Fleet, the structure of the 


interim administration, (presum- 
ably run by the UN while 
Britain and Argentina negotiate 
the future of the islands), he 
cannot move forward until the 
debate about sovereignty is 
resolved. The Britsh want a 
dear statement from - Che 
Argentines, endorsed by the 
Junta, that Buenos Aires, will 
not prejudge the outcome of 
the negotiations over. the Falk- 
lands. if both parties . show 
genuine good will, and are pre- 
pared to respect each other’s 
respective claims - before they 
enter negotiations, the British 
maintain, that procedural prob- 
lems of Sr de Cuellar’s interim 
agreement could be resolved in. 
a matter of hours. r \ 

If the Secretary-General sue- , 
ceecfed, the UN win be given 
a. great lift arid the quiet soHt- 
spoken Peruvian diplomat win 
have secured a considerable 
personal achievement Even If 
he does hot succeed, Ms efforts 
have already won broad respect 
and praise. 


Industry 

attacks 

Galtieri’s 

monetarism 

By Hugh O’Shaughnessy 
Jar Buenos Aim 

ARGENTINE industrialists are 
seeking urgent talks with Presi- 
dent Leopoldo Galtierj in an 
effort to reverse his Govern- 
ment’s monetarist policies. They 
complained that the policies 
are pushing the economy into 
deep recession and producing 
a wave of bankruptcies. 

The Union Industrial Argen- 
tina, which is seeking the meet- 
ing Is the local equivalent of 
the Confederation of British In- 
. dnstries. Its move comes when 
the Government is wrestling 
with inflation close to a rate of 
200 per-cent a year. 

The UIA is seeking a refla- 
tion of internal demand and a 
complete rethinking of financial 
policies which it claims are 
penalising manufacturing indus- 
try and favouring the financial 
sector. Industrial production in 
the first quarter of toe-year is 
estimated Jo. .have, been the 
lowest since 1970. '• ' • 

Many industrialists; are wor- 
ried about, the present, system 

ofindexjng-eormpaihe^.debts'at 

this time of high 'inflation. 'A 
UIA spokesman claimed yester- 
■ day that guarantees offered by 

. borrowers in the form at pfeysi- 
"cal assets, -were progresavely 
losing' fhefr value, making, bor- 
rowing increasingly - difficul t.. 

Industry's difficulties ere well 
illustrated by tids week'sdeci- 
-sion by'RenanIt jo lay off 6,000 
workers at its Cordoba plant 
for 10 days. Workers.are being 
given half pay during the lay 
off and are being lent a further 
25 per cent of their, wages. 

The junta, is .reacting cau- 
tiously to industry's pleas. The 
percentage of ■ qompplsory de- 
posits that the commercial bank- 
ing system Vis required to make 

wife toe Central Bank has been - 
reduced from 16, to ’ 15; retros- 
pective, to the beginning of this 
‘ month. . That' should substan- 
tially increase tbe : already fcish 
degree of Eqjridily in the. fin- 
ancial market and push down 
interest nafes. ; ”•* 

. Citibank ; is currently offer- 
ing an effective annual interest 
rate of 14A08 .per cent for 
seven-day deposits. Other fin- 
ance houses are -offering rates 
nearer. 200 .per cent: Money in 
circulation rose .24^ per cent 
in toe month to May. 10. 

AH is not well even for toe 
bankers. : however. Six -finance, 
booses have gone bankrupt in 
the. past six weeks. ~ 





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Financial Times Thursday May 13 19S2 



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Financial Times Thursday May 13 1982 


WORLD TRADE NEWS 




The EEC is trying to bring car makers more into line, writes Kenneth Gooding 


European motor industry in price debate 


THE EUROPEAN motor indus- 
try is using its considerable 
lobbying power to attempt to 
head off EEC legislation which 
would bring car prices through- 
out the Community more into 
line. 

Behind the move is the Euro- 
pean Commission's determina- 
tion to force down prices in 
some countries, such as the UK, 
where they are well above the 
European average. 

This would help eliminate un- 
official imports from Belgium 
to the UK and from Denmark 
to West Germany, over which a 
potentially embarrassing row 
has been developing. 

The Commission’s competi- 
tion division is already investi- 
gating several allegations about 
steps some companies and their 
national Governments have 
taken to stem the trade. 


At the centre of the con- 
troversy is what bas become 
known in the industry as the 
'*12 per cent clause," which is 
contained in the preliminary 
draft of an EEC regulation. The 
clause aims to make sure that 
the tax free price for any par- 
ticular model of car does not 
vary by more than 12 per cent 
between one EEC country and 
another. 

The Commission has slipped 
the clause into a regulation 
designed to simplify the rules 
which enable car manufacturers 
to operate through exclusive 
dealer nerworks, even though in 
theory such networks contra- 
vene the EEC competition laws. 

The Commission's argument 
seems to be that if any manu- 
facturer is so greedy as to want 
more than 12 per cent extra in 
any country, unfettered com- 


petition should be allowed to 
come to the aid of the con- 
sumer. 

The present arrangements 
contain considerable impedi- 
ment to free trade to protect 
the official dealer networks. The 
Commission has ruled that pre- 
servation of these official net- 
works is in the public interest. 

Under present conditions, a 
dealer is obliged to accept an 
order only if it is from the final 
customer or his agent. No un- 
official dealer is permitted to 
buy in bulk. Each order must 
be for a specific' car for a 
specific customer. 

However, the 12 per cent 
clause would allow wholesale 
trading in cars between one 
country and another if the 12 
per cent barrier was breached 
by a manufacturer. 

Through the CLCA (Comitd 


de Liaison de la Construction 
Automobile des Pays des Com- 
munautes Europdennes), Euro- 
pean manufacturers are prepar- 
ing their defence. 

The industry, broadly speak- 
ing, argues that the potential 
regulation about block distribu- 
tion agreements is not the right 
place for a clause about prices. 

The manufacturers also 
maintain that the 12 per cent 
clause, far from bringing top 
prices down, would force the 
low ones up. 

European consumer associa- 
tions blame the industry for 
ihe extreme differences in 
prices between the EEC coun- 
tries 


However, the manufacturers 
insist that national taxation 
policies are the root cause. 
To keep the retail price 


within reason, the manu- 
facture fix their own prices at 
extra low levels in those 
countries. That would have to 
change if the 12 per cent clause 
was introduced. 

The debate about the pro- 
posed regulation is likely to 
last at least until the end of 
the year. 

In theory, the regulation 
could be put into effect by the 
Commission without any 
reference to parliament, but the 
industry has been promised 
that the European Parliament's 
social and economic committee 
will debate it at some stage. 

lienee this month's activity 
and the industry's message to 
Euro-MPs: “There can be no 
free trade in cars in the EEC 
because there is no economic 
harmony within the Com- 
munity.” . . 


Swiss seek 


deal on 


Soviet gas 


New York plans 


IP 

$ 


By Brij Khlndaria in Zurich 


Irish to boost incentives 
to overseas industrialists 


BY ALAN PIKE, INDUSTRIAL CORRESPONDENT 


STRONG INCENTIVES to 
overseas companies investing in 
Ireland will remain an element 
of the new Government's econo- 
mic strategy, Mr Albert 
Reynolds. Minister for Industry 
and Energy, told British busi- 
nessmen yesterday. 

Industrial incentives had 
attracted more than 800 com- 
panies to Ireland, he told an 
Institute of Directors lunch in 
London. 

“We will not only continue 
them, but will improve them to 
ensure that Ireland remains, as 
it has been for many years, the 
most profitable location in 
Europe for the industrialist.” 


Mr Reynolds stressed that 
during the past five years nearly 
30 per cent of Ireland’s GNP 
had gone into fixed capital 
formation activities like a new 
telecommunications system, 
third-level education with the 
emphasis on technology and 
industrial development. 

The Irish Government is at 
present drawing up a hew 
economic plan which it hopes 
will further improve the pros- 
pects for industrial growth. 

It will be published as a White 
Paper before the end of the year 
and then subjected to consulta- 
tions with trade unions and 
employers’ organisations. 


UK tops champagne market 


BY GARETH GRIFFITHS 


BRITAIN has recovered Its 
position as the top export 
market for champagne. Its 
champagne imports rose by 13.4 
per cent in the first three 
months of this year compared 
with the same period in 1981. 

Figures released yesterday by 
the Comit£ Interprofessional du 
Vin de Champagne iCIVC) . 
showed champagne imports to 
Britain of 1.958,005 bottles, 
compared to a first quarter total 
of 1,726.354 bottles in 1981. 

U.S. imports were 1.609,005 
bottles and Germany, the third 
most important . market, im- 
ported 990,082 bottles. Both- the 
US. and Germany recorded 
decreased import levels in con- 
trast lo the UK. 


Champagne importers and 
shippers say the improvement 
masks the underlying problem 
of champagne supplies. 

Much of the build up' in 
British imports was due to pre- 
price increase stockbuilding. 

Champagne prices rose by 
between 20 per cent and 40 per 
cent in March and consequently 
a levelling off is expected in 
business. 


The shortage ot champagne 
has been caused by poor har- 
vests during the past three 
years. Some houses are limiting 
their exports to smaller markets 
such as Sweden and Holland by 
a quota system. 

But key markets such as the 
UK and the U.S. are unlikely to 


be affected and champagne pro- 
ducers say that export markets 
will receive priority over 
French customers. 

Total stocks have fallen by 
the equivalent of about a year’s 
production in the past three 
years. 

A high proportion of French 
sales were, however, of the 
cheaper champagnes and the 
CIVC says it is keen to protect 
champagne's high status mar- 
ket. 

Monsieur Andre Enders, the 
head of the CIVC's public affairs 
department said yesterday in 
London that during the next ten 
years some 5.000 hectares of 
new vines would be planted 
within the Champagne zone. 


SWITZERLAND Is seeking 
between 250m and 400m cubic 
metres of natural gas annually 
from the Soviet Union up to 
the year 2000. 

Negotiations on die deal are 
nearing completion. ' 

The gas will be channelled 
to Swlssgas, the Swiss distri- 
bution network, by Ruhrgas, 
tiie West German network, 
which will buy it from the 
Soviet Union. The cost Is 
estimated at about SwFr 110m 
(£31 -3m) annually. Switzer- 
land already buys about lbn 
cu m of gas at a cost of 
SwFr 264m from the North 
Sea. 

Negotiations with the Soviet 
Union are being conducted 
by Ruhrgas which will supply 
Switzerland from an esti- 
mated JL2bn cu m quota re- 
ceived by West Germany. 

The price is still being dis- 
cussed bat it is expected to 
indude a fixed base supple- 
mented by a formula which 
takes account of market con- 
ditions and energy price 
fluctuations. The price provi- 
sions would be reviewed every 
three or four years. 

Mr Raoul Kohler, president 
of the Swiss Gas Industries 
Association, told an Informa- 
tion seminar in Lausanne that 
reliable comparisons between 
the cost of Soviet Gas and 
European gas from the North 
Sea cannot be made until 
Ruhrgas completes the nego- 
tiations later this year. 

Soviet Gas will make up 
only about 18 per cent of 
Switzerland’s total gas needs 
and just 1 per cent of its total 
energy needs in the 1999s. 
discounting any risk of exces- 
sive dependence on tile Soviet 
Union. 



'four best customers are up in the air 
—watching a powerful new medium. 


Jet air travel has created a new market 
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Close to 70 percent of this Overworld 
travel is business-oriented. New demo- 
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upscale consumers in the entire market- 
place — as purchasers, not only of 
upmarket consumer products, but pro- 
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budgets in the thick of corporate and 
governmental decision-making. 

In media terms, they have been difficult 
to reach and to influence — until now. 


A business forum on fflm 


We have developed a new and ap- 
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The method does not employ the 
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commercial. Instead, it uses elements of 
news and entertainment, intelligently 
presented, to tell a sponsor’s story in 



lengths up to 10 minutes. 

We think of it as a business forum 


on film in which corporations — their 
achievements, technologies and new 
product developments — are featured 
and discussed. 


WORLD ONPARADE 


The name of tins forum is WORLD ON 
PARADE. The majority of international 
and domestic U.S. wide-bodied carriers 
are screening it every day, on every film- 
showing flight. 

Against the superior demographics of 
this audience, the cost-per-thousand is 
not only competitive ^rilh ground-based 
media, but often more effective. 


The Overworld business forum — on film. 



NEW YORK: 

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New ’forte New York 10022 
(212) 308-4430 



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Each month, over 3,000,000 airline 
passengers find WORLD ON PARADE 
interesting, informative and convincing. 
Tracking studies show that they axe highly 
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More importantly, viewers have the 
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offered sponsors on a first-come basis 
by WORLD ON PARADE. 


For details on how to become 
a WORLD ONPARADE sponsor, 
contact any of our offices. 

We will come flying! 



LONDON: 

753-155 Regent Street 
London WIR 7FD 
01-434-2639 


.TORONTO: 
4New Street 
T&ranta Ontario M5R IPS 
(4I6J 961-3000 


HONGKONG: 

802 ffer East Exchange Bu3cHng 
6 Wyndham Street 
Hongkong 
05-266843 

TOKYO: 

Sarmo Grand Building 
2-14-2, Nagata-cho, GtiywJa-ku ' 

Tokyo 100 Japan 
03-593-144! 


alleghhw v 
international 


state eximbank 


BY PAUL CHttSHUGHT, WORLD TRADE EDITOR 


THE New York- state authorities 
are seeking permission from the 
U.S. Government to launch an 
international trade bond on the 
domestic financial markets 
which might fund a state export- 
import bank. ’ 

Such a development, if suc- 
cessful, could transform .export 
financing in the U.S., providing 
relatively cheap funds to 
medium-sized companies hither- 
to outside the exporting net- 
work.' 

At present export finance for 
U.S. companies through the 
Export-Import Bank of the U-S., 
working on a national level, is 
limited. U.S. export’ credits are 
generally .at higher interest 
rates than those provided by 
countries like Japan, France and 
the UK 

If the state export-import 
bank succeeds, “ in a few years 
every state with export potential 
would do the same" Mr George 
Dempster, Commissioner of 
New York State Department of 
Commerce, said in London yes- 
terday. 

A state decision on whether 
to establish an export-import 
bank will be taken by the end 
of the summer. But it can work 
with' or without the proceeds 
from an ■ international trade 
bond, Mr Dempster said. 

It would take about 18 months 
to establish the bank, by which 
time discussions bn the bond 
with -the federal authorities will 
have concluded. 

Mr Dempster envisages an in- 
itial fund-raising of up to $500m 
l£272m). This could rise to 81 bn 
in three years and up to $5bn 
by the end of the decade.' 

Under present conditions, the 
bond would offer Interest of 


around 11 . per cent to investors. 
This would mean that export 
finance could be provided at 12 
•per cent, said Mr Dempster— a 
cheaper rale than is currently 
available, and one more compe: 
titive with Japanese and French 
rates. 




If Washington refuses to pen 
nut the launching of trade 
bonds, alternative financing for 
the bank would be sought 
through an initial appropria- 
tion of $25m from the state 
and subscription of a similar 
amount ’ from commercial 
banks. \ 

“ With that we could leverage 
§2 00 m, and with that we could 
borrow at .a" lower rate than 
medium-sized companies can 
obtain.’’ Mr Dempster said. But 
this alternative method of 
financing would mean com- 
panies would have to pay 14 
per cent for export loans. 

The establishment of thb 
bank is part of a wider plan 
to safeguard the state’s ecom£ 
mic future by increasing its 
role in world trade. 


A further part of this plan 
is -to attract increased foreign 
investment and Mr Dempster'? 
visit to London has been direcr 
ted to this end. He is a member 
of a New York City mission 
to the UK. extolling the virtues 
of setting up manufacturing 
facilities in the city. 

Direct British investment in 
the metropolitan area of New 
York is worth about $12 bn, hut 
has largely been in the services 
sector rather than manufactufi 
ing. About 300 British can* 
panics have been interested 
enough in New York’s invest- 
ment potential to attend the 
mission's seminars. 


idl 


• 3 


Taiwan ship 
orders claim 


TOKYO — The Marubeni Cor- 
poration said Taiwan’s Ever- 
green Marine Corporation has 
placed a Y53bit (£123m) order 
with a Japanese consortium of 
three firms for eight 34,000 dwt 
container carriers. 

The Japanese group won the 
order through Evergreen’s 
Panamanian subsidiary, out- 
bidding Korean shipyards 
which have beaten Japan in the 
past, year’ in ah international 
race for ship orders, said 
Marubeni . « . . .- 

Reuter • , .. : 


Apple in 


Japan move 


TOKYO — - Apple Computer 
Inc of the U.S. will establish a 
new wholly owned subsidiary in 
Japdn in July. 

It will market independently 
personal computers after com- 
pleting a two year sales contract 
with Toray Industries Inc at the 
end of June, said the company. 

Other details of the subsi- 
diary, temporarily called Apple 
Japanco, are not yet available. 
Reuter 


Krupp wins 
£69m Tunis 
turnkey 
contract 




By fames Buchan m Bonn 


KRUPP POLYSIUS-France 
the .wholly owned subsidiary j._. 
of the West German Krupp 
Polysius concern, ’ has been 
.awarded a FFr 760m 
(£69.4m) order to btuld a : 
.turnkey cement . plant In 

Tunisia. ’ . 

. The plant, at. Birm'Cberga 
just outside Tunis, is 
-expected to begin operations 
at the start or 1985 and win 
produce X300 tonnes of 
clinker per day. 

This will increase domestic 
Tunisian .cement production 
by a third to 4m tonnes per 
year 

‘ The order, from the Societe ; 
Des Ciments de' Jebel et 
Quest, foresees a 45 per cent 
participation from Tunisian- f- ■' 

concerns in the commission- 4 

ing of the project. --r 

The West German Krupp ~ 

Polysius Is itself a subsidiary i-Y 

of the Friedrich Krupp Diver- - - : 
sified Industrial Group 



Dear Dudley, 

Please send mycompiled- 
to-prder Fact File. Here are the 
tacts you need to know. 

First, some details about • 
the size of my company - 
and the business it’s in... 


EVER 
WANTED 
TO WRITE 
A COLUMN 
IN THE 


The type and size of 
property/land I'm interested 


in is... 



As far as my company's labour 
requirements^ re concerned, 

I would envisage... 



In addition, I would like to 
add... "* . 

R(l in the column on the L *iicc 

right, and we’ll fill you In on . 
all the advantages of setting .. 
up business in Dudley - like . . 

the favourable rates and . ' . 

rents, the skilled workforce, onrApnc v ; 

and Dudley’s strategic Ktb/waJb. / ! ; 

position in the West • • 

Midlands -the heart of ' • V>- : . 

British Industry POSTON’"' """ 

V txmN£Z=^. $£ 

chapter to yourcompany’s. 

success story ; ... 

^^M^ropoStanBaou^] > ^ . 

ineopponumys nere oiriieyMec, mss 

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. s 'r:r,Ri Dudley •/*' • 

- Wfest Midlands ‘v:‘- 

md-' * : * T 1 Tel: Dudley 55433, 

ext 4499. 

• . V- * ? . " 












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Financial Times Thursday May 13 19S2 


UK NEWS 



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BY ROBIN REEVES, WELSH CORRESPONDENT 

A NOVEL scheme t«7 encourage 
-unemployed people to start up 
in business on their own, has 
been launched by Swansea City 
Council 


‘ i 


!* 


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The Business Entry Scheme 
guarantees participants the 
same income — for six months 
—as they would receive had 
they stayed unemployed. It is 
open to anybody living within 
the city boundaries who has 
been unemployed for a mini- 
mum of a month. 

If the person’s earnings from 
the news business falls short of 
the _ level they would have 
received in either unemploy- 
ment benefit or social security 
payments — between £50 and £60 
a week— then their income is 
topped up from city funds. 

Swansea Council has chan- 
nelled £80,000 over a year 
(through its own development 
company, which has greater 
operating flexibility) to under* 
write the cost of the scheme. 

It has already approved appli* 
cations from 35 would-be 
executives of whom 21 have 
started trading. A further 15 
applications are being con- 
sidered. 

Income topping-up, where 
required, is made on the basis 
of accounts drawn up for each 
business every four weeks. 

• This book-keeping service is 
paid for by the council, but Mr 
Roger Warren Evans, director 
of Swansea's Trade and Industry’ 


Centre, who thought up the 
scheme, stresses that it also 
helps the participants to get 
their businesses going on a 
sound footing. 

Of the 12 new businesses 
which have so far completed 
their first month, eigbl have 
required a topping-up payment, 
in most cases because they had 
incurred unusually high initial 
expenses. 

No restriction is being placed 
on the type of business qualify- 
ing for support, though priority 
is being given to projects which 
can strengthen the local 
economy, or provide employ* 
ment opportunities. 

Projects backed so far 
include a pickle manufacturer, 
a design studio, a wall plaque 
manufacturer, a telephone 
answering service, a home video 
delivery service, contract typing, 
a furniture restorer, a soft toy 
manufacturer, and several motor 
mechanics, builders and elec* 
tricians. 

Mr Warren Evans is con- 
vinced that the Swansea scheme 
is a marked improvement on 
the Government’s own Enter- 
prise Grant Scheme. 

This is being tried for a 12* 
month experimental period in 
the Midlands. Dartford and Man- 
chester. The Government 
scheme guarantees up to 1.500 
aspiring businessmen an income 
of £40 a week, resardless of 
whether they make a profit. 


Local interests unite over 
Scottish take-over battle 

BY MARX MEREDITH, SCOTTISH CORRESPONDENT 


AN OUTSIDE bid for Anderson 
Strathclyde, the Glasgow-based 
mining equipment manufac- 
turer, has activated a powerful 
defence mechanism in Scotland 
ready to protect the region's 
remaining key industries. 

The bid from Charter Con- 
solidated, the mining finance 
group, would. mean the loss of 
autonomy for Scotland’s third- 
largest engineering company 
after Weir and Howden. 
Anderson is also Scotland’s 
fifth -largest employer — with 
4,500 workers— and its 11th 
largest company in terms of 
turnover. 

The opposition moves are 
from a lobby which spans 
political parties, government 
officials, industry and trade 
unions. Its members are con- 
vinced that there is an estab- 
lished case for maintaining 
industrial decision-making in 
Scotland. 

The Monopolies and Mergers 
Commission's rejection of out- 
side takeover bids for High- 
land Distillers in 1980 and The 
Royal Bank of Scotland this 
year has made important prece- 
dents for the protection of vital 
Scottish interests, say Govern- 
ment officials monitoring tlie 
Charter Consolidated bid. 

Anderson Strathclyde sees a 
‘referral to the commission as 
one of the options open to it. 
However, Mr Ian Little, assist- 
ant managing director, is 
hoping to see off Chartered on 
the basis of the Glasgow com- 
pany's record. 

There could be political 
opposition to the repeated use 
of government mechanisms to 
protect industries in the region 
from free market forces. 

The battle over The Royal 
Bank was different. The bank 
wanted to merge with Standard 
Chartered and the struggle 
became a highly public affair. 

Anderson Strathclyde’s 

defence is initially likely to be 
conducted from behind the 
scenes in the form of a con- 
scious-raising exercise carried 
out largely by the company 
itself. 

It is clear that the Scottish 
Office as well as the Scottish 
Development Agency is already 
taking a strong interest in the 
progress of Charter’s bid. 

Anderson Strathclyde is high 
on the list of “ core industries " 
— about 20 to 30 companies 
whose headquarter presence in 


Scotland is seen as vital for the 
economy. 

Inside the Scottish Office and 
the agency there is a strong 
feeling that the loss of Scottish- 
based companies' autonomy 
seriously erodes management 
opportunities and promotes the 
growth of the branch office 
syndrome. This creates outside 
control over employment, with 
local companies among the first 
to be shut down in any consoli- 
dation by the outside parent. 

Sir Monty Finniston, chair- 
man of the Anderson board, has 
termed the bid totally unaccept- 
able. 'Hie company has followed 
up its initial rejection by a 
letter to shareholders this week. 
Trade union shop stewards in 
the company also met on Tues- 
day to formulate their defence. 

Meanwhile. Mr Neil Clark, 
head of Charter Consolidated, 
gives a Press conference in 
Glasgow today to defend his 
company's bid. 

Mr Little says that the loss of 
another Scottish company would 
affect a whole tier of job 
opportunities at management 
level and there would be no 
room for local initiatives once 
control had passed to London. 

He feels that his company's 
merits should speak for them- 
selves. It is healthy and grow- 
ing and has a good export 
market for its mining equip- 
ment. 

Profits have grown without a 
falter for more than 10 years 
and the company controls a 
major share of the world market 
for longwall mining equipment. 
It supplies about half of its 
equipment to the National Coal 
Board. 

Mr Little felt that Anderson 
Strathclyde did not need the 
international contacts offered 
by Charter Consolidated. 

As the debate gathers 
momentum there is likely to be 
considerable reference to the 
Monopolies and Mergers Com- 
missions recommendation that 
the rival bids for the Royal 
Bank of Scotland from Standard 
Chartered and the Hongkong 
and Shanghai Banking Corpor- 
ation be turned down. 

Twelve Labour MPs under 
Dr Jeremy Bray — whose 
constituency of Motherwell 
takes in one of Anderson’s 
works— have tabled a motion 
caHing on the Government to 
refer the takeover to the com- 
mission. 


Alliance gives Tories 
control of Lothian 

BY MARK MEREDITH. SCOTTISH CORRESPONDENT 


CONSERVATIVE and Liberal- 
SDP Alliance .councillors 
yesterday announced an agree- 
ment giving the Tories effective 
control of Lothian Regional 
Council. Labour lost power there 
in last week's regional elections. 

Labour and the Conservatives 
tied with 22 seats each and the 
Tories needed the support of 
the three Alliance councillors 
Cor the- 25 votes needed to 
control the Edinburgh-based 
council. 

The signed agreement 
between the. parties is thought 
to be the first of its kind 
between Conservatives and the 
Alliance in local government 
although both sides deny it 
amounts to a coalition. 

Under the six point agree- 
ment, the Alliance said it would 
not oppose Conservative 
nominees for places in the 
administration- But an Alliance 
coundllor Is to become chai> 
man of the new ' performance 
review committee, a watchdog 


council 


body overseeing 
functions. 

Mr Donald Gorrie. of the 
Alliance, said his group was still 
ready to outvote the Tories on 
some proposals with support of 
the Labour group. The Alliance 
and Conservatives disagree on 
savings to be made in public 
spending— an issue which pro- 
pelled Lothian into a battle with 
central Government last year 
and again this year. 

Mr George Younger, Secretary 
of State for Scotland, has 
warned that he plans heavy cuts 
in the rate rapport grant to 
Lothian unless it reduces its 
spending, which is said to be 
22.6 per cent or £66m above 
Scottish Office guidelines. 

Both Alliance and Conserva- 
tive councillors, hope that Mr 
Younger will be flexible follow- 
ing the change in Lothian 
administration, and signs of 
readiness to cut spending. The 
AHiance hopes the Secretary of 
State will not press for the 
maximum ..cuts to the fidOOm 
budget 


! Advance 
| credit for 
| art sales 
| offered 

| By Antony Thom croft 

1 A SERVICE which ensures 
immediate ca?h for works of 
art while they waii-^somelimes 
for a long time— u> be auctioned 
was announced yesterday by 
Fine Art Funding in association 
with First National Securities, 
a leading consumer credit com- 
pany. 

Under the scheme, the owner 
of a work of art can receive 
up to SA per cent of ns reserve 
value with the remainder com- 
ing once it has been sold at 
auction. The interest charge on 
the advance is J per cent a 
week, with a minimum chars* 
period of eight weeks. The re- 
payment of tho advance, plus 
interest charge, is made when 
the wnrk of art is sold at 
auction. 

The attraction of the irl^a. 
apart from a quick realisation 
of an asset, is that works of art 
ran be held back fur specialist 
sales rather than disposed or 
quickly through general sales. 

The main problem is the fix- 
ing of the reserve price. If an 
auction house overestimates the 
value of an object and it sells 
for less than half the reserve 
the auction house will he 
expected to pay the remainder 
of the debt to First National 
Securities. 


Urban transport systems adapt to fresh demands 


THE first edition of Jane's 
Urban Transport System.', pub- 
lished today, comer- at a par- 
ticularly appropriate time. 

Urban transport may not 
have the romantic ring of snme 
«f Janes' more famous publica- 
tions, stich as World Railway-: 
and Fighting Ships, hut the 
chans that has followed London 
Transporfs cheap fare- policy 
and the Law Loitl r .’ ruling has 
thrust international compari- 
sons with l-iondon's once 
superior system into a new 
positiun of importance. 

The international information 
contained in the booh is exten- 
sive. Rail system.- in 1B2 cities 
and bus systems in 20S cities 
ore covered, along with details 
of their equipment, servicer, and 
finance, and there is a separate 
section nn vehicle and equip- 
ment manufacturers. 

From San Dicso to Tashkent, 
from Trondheim to Santiago do 
Chile, the reader can learn the 


Hazel Duffy finds some intriguing comparisons in Jane’s new annual 
and puts LT*s funding problems into perspective 


times of the first and last trams 
and bui&s and the maximum 
summer temperature in under- 
ground tunnels, as well as more 
relevant information on the 
number of passengers, route 
length, fare structure, methods 

of fare collection and evasion, 
and the proportion of trains and 
buses which are one-person 
operations. 

In the Eastern bine, where 
urban transport systems are a 
matter of pride sr. well as 
necessity because nf the much 
lower density of private cars, 
low fores policies produce a 
much higher unaae nf public 
transport than in the West 

The Moscow metro, for 
instance, which has jess than 
half the route length of London 


Transport. carries 2,340m 
passengers a year against LTs 
539m. 

Operating subsidies . are 
accepted as necessary in almost 
every city, although it is much 
more difficult to define the 
subsidy level which is needed 
to run' an efficient system. 

In the U.S.. for instance, the 
Reagan Government has 
announced that urban transport 
funding will he returned to the 
control of individual states, 
operating assistance to bus and 
urban rail systems will be 
phased out over three years and 
federal funding of new urban 
rail systems will be deferred 
indefinitely. 

LT's problems must wem 
mild in comparison — the Gov- 


ernment has said that it will 
not cut its subsidy this year. 

The book’s editors, however, 
comment that LT. “while doing 
its case no good by its abysmal 
productivity, record over the 
years, has a justifiable com- 
plaint that it must proride T5 
per cent of its operating costs 
from fares when most other 
major systems in the world pro- 
vide only 30 to 50 per cent.” 

In spite of the problems in 
the U.S. and London, the overall 
impression conveyed by the 
book — which Jane’s plans to 
publish annually-— is that urban 
transport systems are expand- 
ing, adapting to new demands, 
and coming up with new tech- 
nical ideas. 

Mr David Howell, Transport 


Secretary— who. with a team of 
officials at tlie Department, is 
studying ways of bringing about 
a more efficient system in 
London — has recently visited 
Munich and Hamburg, where he 
was “much impressed by tho 
efficiency of services and the ' 
stability that had been achieved 
on their public transport 
system." 

He also visited Paris soon 
after taking office where he 
must have been impressed by 
the fact that Reeie Autonomy 
dos Transport Parisiens (RAT?) 
is forecasting an annual increase 
in passengers of i.T per rent t 
until I9S5 (in 19S0 it carried 
1,317m passengers). 

By contrast. LT has lost 20 . 
per cent of its bus passenger , 
business since March 21, when 
fares doubled, and 10 per cent * 
of tin Underground business. 
June's Urban Trcnsnori Systems ’• 
19S2. Price £12.50. ' : 


TIIE HEAVY axle division 
of Guest-Keen & Nettiefold 
has completed a £12m Invest- 
ment programme which, to- 
gether with increased produc- 
tivity and greater labour flevi- 
hilltv. has raised potential 
outpnt at (he site by almost 
70 per cent. 

The division, which opened 
a new assembly area at Kirk- 
stall, Leeds, yesterday, the 
final stage nf a five-year 
investment programme, has 
suffered from the steep down- 
turn In the commercial 
vehicle market. 

The GKN Axles Company 
has shut two plants In Las- 


GKN completes build-up of axle capacity 


BY NICK GARNETT, NORTHERN CORRESPONDENT 


cashire and Devon. The Leeds 
heavy axles division has also 
reduced its labour force, 
from 2.000 to 1,300 in the 
past four years, partially 
linked to the introduction of 
new equipment. 

It has recently been increas- 
ing outpnt, however, partjy 
as the result of having a wide 
spread of customers, includ- 
ing manufacturers of dock 
vrliiclrs, fork-lift trucks and 
military vehicles. A third of 


its capacity has been directed 
towards producing equipment 
for the oil industry'. 

The division, which sup- 
plies axle transmissions to 
Inf) vehicle builders, is also 
attempting to secure a foot- 
hold as a supplier to Japanese 
manufacturers. It has recently 
supplied axle prototypes to 
Komatsu and is in detailed 
technical discussions with 
Hitachi Excavators. 

The Amalgamated Union of 


Engineering Workers, the sole 
recognised union on the shop- 
floor at Leeds, has agreed to 
increased flexibility over the 
past five years. 

Apart from the Introduction 
of new equipment, the divi- 
sion has been altering the 
working environment in the 
sub-assembly areas to help im- 
prove workers' self discipline 
and job satisfaction. 

The division claims the new 


plant Is the most modern In 
the world, and will raise poten- ) 
tfal output from 30,000 to , 
axles a year. 

The division has a farther 1 
£8m programme for 
machinery updating but man- 
agement has not obtained all 
the productivity improve- 
ments it would like. 

It has been unable to obtain 
acceptance of a gcenral re- 
moval of ceilings on outpnt- 
I inked bonus payments. 
Union representatives fear 
pay differentials would be 
distorted if the ceiling were 
moved. 


This is Thomas. One day, he might win 
the Nobel Prize. Or perhaps he’ll even get 
a job. (Anything’s possible, after all.) 

But for two hours last Autumn, all his 
glorious futures hung in the balance. 

He contracted an infection. His temper- 
ature soared and he fell into convulsions. 

Before we got together with British 
Telecom, four hours might elapse between 
the development of serious symptoms and 
a patient’s admission to hospital. 

Now, thanks to the national radio 
paging system, a doctor can be alerted to 
an emergency by a ‘bleep’ carried about his 
person, enabling him to save vital minu tes 
in the treatment of serious illness. 

So it was with Thomas. His GP was at 
his side within an hour, and a potentially- 
fatal situation defused. 

One day, he’ll know enough words to 
thank his lucky stars. 

Meanwhile, it’s hard to resist raising 



an eyebrow at those who depict the micro- 

rp 

>e 

surplus to requirements. 

For there’s nothing inherently sinister 
about a silicon chip. It is, after ail, merely a 
slave. It does what it’s told. 

We tell ours, among other things, to 
train pilots in our flight simulators; to 
entertain us through our television and 
recorded music systems; and to take the 
drudgery out of office work through our 

niter terminals, 
bump into us in all 
sorts of unexpected places as he grows up. 

And we believe that, thanks to us, his 
world will be rather better than the one he 
almost left, last September. 





fl^fl^^»wnimoPgasflM-RintfflI5tflNISAUflMl6MAtelHMnSHnXCIt)0NIG5.IFYDUVITOU>Ui^ 


& 


Financial Times Thursday Wj 


1U Ivu^ 


UK NEWS 




Russian aircraft buzz N. Sea fields 


BY RAY ©AFTER, ENERGY EDITOR 


RUSSIAN SPY aircraft are 
buzzing North Sea oil fields. 

Offshore oil operators 
are becoming increasingly 
concerned about low-flying 
surveillance by Russian 
Bear reconnaissance air- 
craft in the UK oil- 
producing sector of the 
North Sea. 

In particular, they are 
worried about the danger 
to their own helicopter 
operations in and around 
the oil fields. 


A leading producer, Shell 
UK, was yesterday prepar- 
ing a report to the Energy 
Department about a recent 
incident involving a Bear 
spy aircraft and a Royal 
Air Force jet The Bear air- 
craft was followed at high 
speed through the 500- 
metre safety zone above the 
Brent Field oil platforms. 

The safety zone is an 
advisory navigation “ no- 
go” area imposed to pro- 


tect helicopter activity 
around the platforms. 

Shell commented last 
night: “We just wish to 
point out the dangers of 
aircraft flying so dose to 
platforms without prior 
notice.” 


It is understood that the 
incident and its implica- 
tions have also been raised 
in the aircraft committee 
of the UK Offshore 
Operators Association, 


which represents the lead- 
ing North Sea companies. 

The Foreign Office said 
that it was unaware of the 
incident and could make no 
comment 

Oilmen report that 
Russian aircraft are fre- 
quently seen flying high 
above North Sea oil in- 
stallations. They are con- 
stantly checked by aircraft 
of the RAF and other Nato 
forces. 


Offshore operators 
pointed out that some of 
the larger fields, such as 
Brent and Forties — which 
are equipped with several 
large production platforms 
— have among the highest 
aircraft activity rates in 
the country. Helicopters 
are constantly flying per- 
sonnel and equipment 
between shore' terminals 
and platforms, and 
between the offshore 
structures themselves. - 


Select committee backs rail electrification 


BY HAZEL DUFFY, TRANSPORT CORRESPONDENT 


THE GOVERNMENT should 
authorise British Rail to elec- 
trify the East Coast main line 
and make sure it has the funds 
to finance the project, says the 
all-party Commons Select Com- 
mittee on Transport. 

In its report on main line 
electrification, published yes- 
terday. the committee supports 
the Government's insistence 
that major investment projects 
by BR must depend on evidence 
of productivity improvements. 

It also says the Government 
is right to expect outline 
schemes on any programme io 
be subject to detailed appraisal 
before being implemented. 

But it concludes that the 
Electrification Review, carried 
out by the Department of 
Transport and the British Rail- 
ways Board and published early 
in X981, has established a prim a 


facie case for some el ectifi ca- 
tion and that it is now “ incum- 
bent " on the Government to 
come to a speedy decision on 
the board's proposals. 

The MPs, chaired by Mr Tom 
Bradley, Social Democrat MP 
for Leicester East, adds the 
important proviso that a Gov- 
ernment commitment to the 
principle of further electrifica- 
tion “ is quite meaningless if it 
is not also supported by an 
acknowledgement of the need 
for adequate financial 
provision." 


to Leeds and Newcastle route, 
where it believes the investment 
could be justified financially. 


In spite of the rail strike 
earlier this year caused by the 
dispute with Aslef over flexible 
rostering, and the current 
dispute over the manning of 
new equipment on the St 
Pancras-Bedford route, the com- 
mittee wonts early authorisation 
for electrification of the London 


It recommends that the 
Government reviews the board's 
external financing limit and 
investment ceiling so that 
additional resources are 
specifically made available for 
this project 

This will help maintain the 
existing rail electrification con- 
tractors, which the committee 
sees as important both for the 
country’s future rail modernisa- 
tion needs and for the export 
potential of the contractors. 

The committee, which took 
its evidence in private, did not 
have access to the report of 
the Centra] Policy Review Staff, 
owhich is assumed to have 
influenced the caution on 
electrification expressed last 
June by Mr Norman Fowler, 


then Transport Secretary. 

It argues .however, that the 
increasing likelihood that BR 
will have difficulty in meeting 
its target of commercial opera- 
tion of the Inter-City and 
freight businesses by 1985 
should not be seen as an over- 
riding constraint on the 
approval of further electrifica- 
tion schemes, since electrifica- 
tion could be financially 
justifiable even if the commer- 
cial businesses remain in deficit 
somewhat longer. 

British Railways Board, which 
argues that electrification is 
essential both as something to 
offer the rail unions in return 
for productivity progress and 
for the efficient operation of a 
modem railway system, des- 
cribed the committee's report 
yesterday as “a positive 
endorsement of the case for 
electrification.” 


Mr R. B. Reid, BRB’s chief 
executive, said yesterday: "With 
progress in productivity 
matched by additional invest- 
ment approval by the Govern- 
ment both the Board and -the 
railway equipment industry will 
have the commitment that is 
necessary to undertake long 
term electrification efficiently.” 
• Repairs were being made ait 
Bedford Midland Road station 
yesterday after an electrical 
cable fire which cut off all 
power and stopped Inter-City 
trains between St Pancras and 
Derby, Nottingham and 
Leicester. 

British Rail said: "With the 
electricity cut, all the signals 
were blank. All the points 
refused to move and the signal 
boxes could not tell where the 
trains were." Trains were 
diverted to Euston through 
Nuneaton and Leicester. 


Aluminium costs are 
‘highest in Europe 


BY FAN RODGER 


BRITISH aluminium companies 
pay higher electric power 
charges for their smelters than 
other European producers on 
average — partly because the UK 
electrical generating industry 
takes a pessimistic view of its 
future production costs. 

This is one of the conclusions 
of a major study of power 
charges paid by aluminium 
smelters in the non-Socialist 
world. The study, carried out 
by Commodities Research Unit, 
a London-based metals con- 
sultancy group, found that 
smelter power costs varied from 
three mills to 82 mills per kilo- 
watt hour (1 mill =0.1 U.S. 
cents) in October ISSI. The 
average was 22 mills per kwh. 

The 375-page study was com- 
missioned by a number of 
major producers and govern- 
ment agencies in Australia and 
North America. It appears at a 
time when the British Govern- 
ment is under pressure to 
revise power pricing policy for 
the Anglesey aluminium smelter 
in Wales and with a view to a 
possible reopening of the Inver- 
gordon smelter in Scotland. 

Power and raw material costs 
are the two most important 
components in making 
aluminium and the proportion 
of power charges in overall 
costs varies from 20 per cent to 
55 per cent around the world 
according to Mr Michael Hodson, 
manager of the team which con- 
ducted the Commodities 
Research study. 

Mr Hodson said the highest 
power charges were paid by 
Sumikei and Sumitomo in 
Japan, with South Korean and 
Taiwan smelters also paying 


very high rates. 

The lowest charges were paid 
by Alcan Aluminium. whi.ch 
owned substantial hydroelectric 
capacity in Canada. Other rates 
in North America ranged up to 
the 32 mills per kwh charged by 
the Tennessee Valley Authority. 
Average U.S. rates were margin- 
ally ahead of those in Europe. 

He refused to reveal details 
from the Study of charges in 
European countries, but said 
that British Aluminium's Inver- 
gorden smelter, until its closure 
last December, was paying the 
second highest rates in Europe 
after a Spanish smelter. Gener- 
ally. UK rates were above the 
European average. 

He said that both French and 
British electric utilities ap- 
proached pricing from the point 
of view of long run marginal 
costs. But whereas Electricite 
de France assumed that addi- 
tions to capacity would be 
nuclear and become relatively 
less expensive, British utilities 
based their pricing on thermal 
capacity, which they assumed 
would become more expensive. 

Mr Hodson noted that alumi- 
nium companies were becoming 
increasingly concerned about 
long term contracts. They were 
looking as closely at escalation 
clauses as at base rates. 

This had implications for the 
location of future smelters. 
Alcoa had complained bitterly 
about sharp rises in power 
charges for its Portland smelter, 
under consrtuction in Victoria, 
Australia. 

A year ago, Alumax, the 
U.S.-Japan aluminium group, 
withdrew from a A$640m 
smelter project in New South 
Wales. 



Mobil in £230m oil 
refinery expansion 


BY RAY ©AFTER, ENERGY EDITOR 


MOBIL OIL is about to com- 
mission a £23 0m expansion of 
its Coryton oil refinery in 
Essex. 


CEGB presses 
case for reactor 


By David Fish lode. Science Editor 


Discounts offered on cars 


DISCOUNTS between 10 and 
15 per cent on new cars are 
being offered to the 165.000 
subscribers to the bi-monthly 
magazine ■ “ Practical Investor.” 

Mr Adrian Ball, the owner- 
publisher. said he had linked 
with organisations already pro- 
curing cars at "fleet" rates. 

"This means that as a re- 
gistered reader you are now 
able to enjoy the same purchas- 
ing power fas an individual or 


small business proprietor) as 
that exercised by a large com- 
pany," the magazine claims to- 
day in a front-page article. 


Mr Ball said the fleet pur- 
chase rates would apply not only 
to people buying for cash but 
also to those wanting a hire- 
purchase arrangement 
A few luxury foreign cars In 
short supply are excluded from 
the scheme 


A DOCUMENT which the 
Central Electricity Generat- 
ing Board believes may 
herald the end of orders for 
the BriUsh-designed advanced 
gas-cooled nuclear reactor 
(AGR) was published by the 
board yesterday. 

The statement of case for 
its Sizewell B project says 
that electricity from this 
pressurised water reactor 
(FWR) should be over 20 per 
cent cheaper to generate than 
power from a new AGB. This 
Is because Sizewell B win be 
much smaller than an AGR 
station and about 25 per cent 
cheaper to build. 

In compiling the statement, 
the board has tried to antici- 
pate every argument that 
might he used against Size- 
well B at the public inquiry, 
scheduled to start next 
January. 

The statement forms part 
of a library of reports from 
the board and other nuclear 
industry sources which the 
hoard plans to submit to the 
Inquiry. 

The document makes the 
case for a nuclear station of 
1,110 Mw capacity, based on 
the Westing bo use PWR, which 
the board hopes to start con- 
structing, at Sizewell In 
Suffolk in 1984, for comple- 
tion in 1991. 

The hoard believes that it 
has incorporated sufficient 
new safety features in the 
design to convince the 
Government's Nuclear Instal- 
lations Inspectorate that the 
same design could be built 
much closer to major popula- 
tion centres than Sizewell. 

The case for and against. 
Page 22 


The complex will enable 
Mobil to produce a higher pro- 
portion of lighter, more valuable 
products such as petrol, heating 
oil and chemical raw materials. 
The U-S.-based company said 
that the work, due to be com- 
missioned on July 1, would 
make the refinery one of the 
group’s most sophisticated pro- 
duction plants. 

Coryton's importance has 
been further enhanced by the 
closure of Mobil’s refinery in 
Amsterdam. announced on 
Tuesday. The processing plant 
will be closed on September 1 
and the site will be used as a 
terminal for receiving and ship- 
ping refined products. 

Mobil’s Amsterdam closure, 
which Is in line with a general 
rathmatisatiou. programme being 
carried out by the European, oil 
industry, will leave Mobil with 
five wholly-owned refineries in 
Western Europe. There are two 


in France (Frontignan and 
Gravenchon), two in West 
Germany ( W Lib elms haven and 
Woerth), and Coryton. 

Coryton, with a capacity of 

175.000 barrels a day, will be the 
biggest of (be five. Mobil said 
ft would be a “key supply 
source " for North-West Europe. 

Although Che investment at 
Coryton will not raise overall re- 
finery capacity, it will produce 
more high-value products, 
through the installation of a 
catalytic cracker. Mobil said it 
expected to export some of the 
products. 

The Amsterdam refinery is a 
victim of the recession and 
slump in demand for oil pro- 
ducts that has led to the closure 
of several major European re- 
fineries. 

In general, plants are operat- 
ing at only 60 per cent of 
capacity. Mobil said that the 
present throughput at Amster- 
dam was only 50 per cent of 
capacity. Only one-third of the 

120.000 barrels a day capacity 
would have been in use before 
long, the company feared. 


Non-executive directors 
fi play more positive role’ 


NON-EXECUTIVE directors are 
playing a more positive role in 
the management of British 
companies, according to a sur- 
vey of the country's boardroom 
practices. 

While their numbers have 
not increased — they are still in 
a minority on most boirds — 
more companies are appointing 
non-executive directors to 
serve on key management com- 
mittees, in particular the audit 
and remunertation committees. 

The survey, by headhunters 
Korn/Ferry International, 
shows that in the past year the 
number of companies with non- 
executive majorities on these 
two com mi tees has doubled. 

The number of companies 
with non-executive majorities 
on audit committees increased 
from 14 per cent to 25 per cent 
while 50 per cent had remunera- 


tion committees with non-execu- 
tive majorities, compared with 
27 per cent in the previous year. 

An audit committee maintains 
independent contact with a 
company’s auditors, and moni- 
tors their function. Remunera- 
tion committees set directors' 
pay. 

Such committees — as well as 
non-executive directors on 
boards — are relatively new de- 
velopments in the UK. In the 
U.S. most boards have a majority 
of non-executive directors but in 
the UK only about a third of 
directors are non-executive. 

The survey, the third of its 
kind by Korn Ferry, covered 
more than 300 organisations in 
The Times 1,000 companies. 

Boards of Directors Study 
1982, available from Korn /Ferry 
International,^ 2-4 King Steet, 
London SW1. Price £15 


‘Heir apparent’ goes back to his roots 


THE TEXTILE world was 
stunned when Mr Brian Haggas 
announced last month that he 
was to leave the board of 
Dawson International. 

He had been -the man tipped 
to succeed Mr Alan Smith as 
chairman of the group, which 
is recognised by ocher British 
companies as the best knitwear 
company in the country — and 
possibly .the world. 

Yesterday he dropped another 
bombshell, with the news that 
he was buying back most of 
what was once the John Haggas 
group from Dawson for £9 -2m. 

And though some speculators 
will claim that the deal was 
sewn up before he left Dawson, 
Mr Haggas maintains that he 
had not considered dt when he 
left on April 30. 

When Dawson bought the 
long-established John Haggas 
group of companies in 1978, it 
was thought the deal was as 
much to secure Mr Haggas as 
his company’s worsted yarn 
spinning and circular knitting 
know-how, 

Dawson has the most famous 
names in the business on Its 


Brian Haggas has put the textile world in a spin. Anthony Moreton 
reports on its break with Dawson 


banner — Pringle, Braemar, 

Ballantyne, Glenmac and Barrie. 
It also - makes pullovers for 
Marks and Spencer. 

Under its dynamic chairman, 
Mr Smith, one-time fighter pilot 
flying wingman to Douglas 
Bader and holder of the DFC, 
the company bounded back after 
a bad spell 10 years ago. 
Between 1977 and 1981, sales 
almost doubled to £ 181 m, 
exports went up by some 80 
per cent to £54m and profits 
doubled to £20.66m. 

Mr Haggas, now 50, was seen 
as the front-runner as successor 
to Mr Smith, who is 65 and has 
been looking for someone 'to 
take his place for some time. 

Mr Haggas’ decision to quit 
Dawson confounded all that and 
set the tongues wagging. 

Yesterday's announcement 
that Mr Haggas, with his mother, 
Muriel, was buying back most 
of the group will set those same 


tongues concluding that it was 
pre-arranged. But it was not like 
that at all. 


He explained yesterday: 
"When my company was taken 
over in 1978 I had a gentle- 
man's agreement that I would 
stay for three years. After 
that, the position was left 
open. Dawson is a damn good 
company and I enjoyed my 
time with them very much. 


“The decision to buy back 
came out of the blue follow- 
ing a chance remark by my 
accountant. I wrote to Alan 
about the possibility of buying 
back the Keighley interests and 
he said everything has its price. 
The whole deal has been done 
in the past fortnight" 


Mr Alan Smith confirms 
this: “Brian expressed a wish 
originally to stay three years. 
He is a great entrepreneur with 
a two-product company and 


perhaps finds it hard to be an 
international group man. It’s 
as simple as that" 

That explains the mechanics 
of the operation, but not the 
reasons. These lie in the 
paternalism Mr Haggas feels for 
a company which has been in 
his family since 1715. 

*' Really there are four 
reasons: sentiment, taxation, 
the chance of a pick-up in the 
economy and you can have a lot 
more fun when you are your 
own boss in a private company." 

More significantly, Mr Haggas 
believes Dawson is a Scottish 
company— its headquarters is In 
Kinross, not far from SL 
Andrews— and that its strength 
and future growth must stem 
from these roots. As a Yorkshire- 
man, he was simply unwilling to 
uproot and go North and he 
did not believe the company 
could be run from Keighley. 

“ The profits of Dawson come 


from the high-quality Scottish 
knitwear and it would be 
extremely difficult having a 
chairman and chief executive 
living i n Yorkshire and running 
it." 


So where does this leave 
Smith and Dawson ? He says 
he has not made up his mind. 
But the word in the industry is 
that he will announce his retire- 
ment— or some form of limited 
retirement — at the company’s 
annual meeting in July. 

The favourite to succeed him 
now is Mr Ronald. Miller, 
another 50-year-old, one-time 
finance director and; deputy 
chairman since Mr Haggas gave 
up the Job. 

There is some feeling In the 
textiles world that finance men 
do not make good chairmen — 
though Mr Russell Smith, chair- 
man of Allied Textiles, has gone 
a long way to breaking down the 
ingrained suspicion of figures 
men, particularly in Bradford. 

Despite his background, the 
odds must be shortening on the 
Smith crown being transferred 
to Miller. . . 


Sharp fall 
in central 
government 
borrowing 


By David Marsh 


The Government’s . revenues 
have started the financial year 
on a buoyant note, according 
to Treasury figures published 
yesterday. The central govern- 
ment borrowing requirement 
last month was only a third 
of the figure in April last 
year. 

The big fall— to £815m 
compared with £2.42 bn In the 
same month of 1981— was 
mostly due to the civil ser- 
vants 1 dispute last year, which 
held up receipts then and is 
now helping to boost them. 

But there seems also to 
have been an underlying im- 
provement In the Govern- 
ment's finances over the past 
tew months, with revenues 
holding up wen and spending 
coming under control. 

The overall 1981-82 borrow- 
ing requirement for the year 
ending In March fell sharply 
to £7.59bn from £12.9 6bn In 
1989-81. 

The 1982-83 borrowing re- 
quirement has been forecast 
by the Treasury at £9.29bn. 

The Treasury estimates that 
taxes held up by last year’s 
pute are trickling In at a rate 
of about £2 50m a month. 
Without these flows, borrow- 
ing last month would have 
been just over £lbn- Since 
£1.5bn of delayed taxes were 
still outstanding at the end 
of the last financial vear. the 
backlog probably will not be 
cleared until the autumn. 

Revenues into the Govern- 
ment's consolidated fund — 
the biggest component of 
official receipts — last month 
jumped to £5.99bn, up 45 per 
cent from the depressed 
figure of £4.13fm in April, 
1981. 


CENTRAL GOVERNMENT 
BORROWING REQUIREMENT 


(On) 

December 

843 

January 

WU* 

February 

81 

March 

573* 

April 

* Repayment. 

815 - 


Source.- Treasury 


Abbey National 
to renew homes 

ABBEY NATIONAL, the 
second largest building 
society, launched a scheme 
yesterday to buy up to 500 


houses a year in run-down 


housing areas, renovate them 
and sell them at "a deeent 
profit," said Mr Clive Thorn- 
ton, chief general manager, at 
a meeting in London. 

The society wants select td 
“ show houses " in six action 
areas — Bristol. Carlisle, 
Leicester. Liverpool. New- 
port, Gwent, and Waltham- 
stow. It aims to create reno- 
vated houses which people 
proposing to acquire their 
own Improvement grants from 
the Gove rnm ent cam see. 

The decision was taken 
after Abbey National took 
legal advice on interpretation 
of Section 7 of the 1962 Build- 
ing Society Act, about the 
right of a building society to 
acquire property for its busi- 
ness. 


Mersey contract 

ATLANTIC Container Line, 
largest consortium on the 
North Atlantic, has signed a 
renewed five-year ■ contract 
with the Port of Liverpool to 
sail from the specialised 
terminal in Royal Seaforth 
Dock. 


Israel trade denial 

MR LEON BRITT AN, Chief 
Secretary to the Treasury, 
waded into the Arab boycott 
controversy in London yester- 
day by denying that ft was the 
key reason for Britain's 
declining share of trade with 
Israel, now £5 00m a year. 

He was answering Hr 
Monty Sum ray, chairman of 
the Brltish-Israel Chamber of 
Commerce, who said fear of 
the boycott largely explained 
why the UK share fell from 16 
to 6 per cent from 1970 to 
1981. 


Gatwick takeover 

DAN AIR. the Independent 
charter and scheduled airline, 
has taken over the share of 
Gatwick Handling formerly 
owned by Laker Airways 
International. 


Reed mill to shut 

KDP Wallcoverings, a unit of 
Reed International FLC, will 
close one of Its three Lan- 
cashire mills and concentrate 
production at the other two, 
the group said. The operation 
would Involve no loss of pro. 
duction capacity and be 
accompanied by refurbishing 
of machinery at the remaining 
mills. A new centralised 
warehouse will open and the 
others will be phased ©at. 


Lif esuite boom 

VACUUM REFLEXT of 
Martlesfaam, . near Ipswich, 
has had a Falkland* crisis 
boom In orders for the special 
lifesaving clothing it makes. 
After going through a lean 
spell until the invasion, it 
received a Government re- 
quest for all its surplus sur- 
vival suits. Orders for the 
special one-piece garment 
have poured tn ever since. 

If claim orders worth 
£160,009 and a further ten- 
workers recruited. 


Engineering post 
for O’Brien 






BY ALAN PIKE, INDUSTRIAL CORRESPONDS! T 




SIR RICHARD O’BRIEN,, who 
lost the chairmanship of the 
Manpower Services Commission 
earlier this year, was yesterday 
appointed chairman of' the 
Engineering Industry Training 
Board. 


Both decisions, were the 
responsibility of Mr Norman 
TeWbit. Employment Secretary. 

Union leaders were critical of 
Mr Tebbifs failure to reappoint 
Sir Richard at the MSC. They 
suspected that part of the 
reason was that the commission 
had, under Sir Richard's chair- 
manship. opposed the Govern- 
ment’s decision to abolish most 
of the statutory industrial train- 
ing boards. 

Yesterday’s decision gives Sir 
Richard the leadership of what 
is, in many ways, the premier 
surviving statutory board. Mr 
Tebbit also announced that Mr 
Leslie Kemp, a former Trans- 
port and General Workers 
Union national official, is to be 
reappointed as chairman of the 
Cons tru ct i on Industry Training 
Board. 

By making appointments 
acceptable to' the unions, the 
Employment Secretary may suc- 
ceed in slightly reducing the 
tension which is building up 
between them and the Govern- 
ment over whether young 
people who refuse to take part 
In the new Youth Training 
Scheme should be denied sup- 
plementary benefits. 

Sir Richard will take over the 
chairmanship of the engineer- 


ing board when Lord ' Scanlon, 
former president of the Amal- 
gamated Union of Engineering 
Workers, retires from the post 
in July. Lord Scanlon told tee 
Government he did not wish to 
be considered for a further 
term. 

Engineering employers, wh o 
are responsible for meeting 
the operating costs of the 
training board, had stressed Co 
the Government that the next 
chairman should come from 
the employers' side. 

The Engineering Employers 
Federation put forward two 
names, including that of Mr 
Anthony Frodsham. its former 
director general, who retired 
earlier this year. 

Although Sir Richard was 
not among the names, he is 
likely to be welcomed in the 
industry. His previous career 
includes working in engineering 
at the old British Motor Cor- 
poration and Delta Metal. 

He said yesterday that he 
would not have taken the post 
without feeling that he would 
have the support of both 
employers and unions. 

He would he taking on the 
job at a time when the engin- 
eering industry was facing key 
issues of training for new tech- 
nologies and introducing the 
New Training Initiative to re- 
form Britain's approach to 
training. 

Sir Richard’s and Mr Kemp's 
posts are paid on a 2} -day-week 
part-time, basis and carry a 
salary of £7,393. 


Prior spells out warning 
to Harland and Wolff 


BY OUR BELFAST CORRESPONDENT 


HARLAND AND WOLFF, the 
Belfast shipbuilders, yesterday 
was given its sternest govern- 
ment warning about the need to 
increase productivity and to 
deliver on time. 

Mr James Prior. Northern 
Ireland Secretary, said on a 
visit to the state-owned ship- 
yard that the company must cut 
its costs and increase competi- 
tiveness. 

“ The add test must be the 
ability of the company to deliver 
the goods when required, and 
at the right price. For far too 
long (he company has been fail- 
ing fiiait test," he said. 

This affected the confidence 
of shipowners and made repeat 
orders less likely. . Also* it 
exposed the company to sub? 
stantial cost penalties. 

Mr Prior said: “ Productivity 
improvements, where they have 


been made, have not always 
been adequately sustained and 
very large losses have been 
made on the building of indi- 
vidual ships." 

Last month the Government 
announcement it would provide 
more than £47m to see Harland 
and Wolff through 1982/3. But 
Mr Prior said yesterday that ' 
the public investment of £7,090 
per worker could not be sus- ■ 
tained. The government subsidy 
was not •“ a bottomless weH." I 

He said there will be stream- J 
lining within the company — a ■ 
reference < to expected cute is [ 
the labour force and a reduc- 
tion in overheads. 

.- «•! am not, in the. Ulster 
phrase, -a soft, touch. I want J 
the shipyard with its great j 
history and tradition to succeed, i 
All of the workers must help ! 
me to help them," be added. 


Backing arranged for 
Protel news systems 


BY GUY DE jONQUERES 

MORE than £300,000 of back- 
ing has been arranged by the 
British Technology Group and 
private investors for Protel, a 
fledgling British company which 
has developed a range of com- 
puterised systems for broadcast- 
ing production and manage- 
ment. 

Protel. based in Binfield.. 
Berkshire, says- its systems can 
improve efficiency and fleribitiiv 
by providing automated - sup- 
port for 17 different functions 
carried nut by broadcasting 
organisations. 

It supplied Its first system 
recently to Television South. 
Tbe system, known as News- 
speed, controls news gathering,- 
editing and presentation and 
deals with programme planning 
and production of live' news and 
magazine broadcasts. 

Ail incoming news items are 
filed on the computer and can 
be called up on display screens 


by editors and reporters. The 
items can be edited and fitted 
into a production schedule on 
an integral word processing 
s ystem and the resulting text is 
displayed on a computer- 
controlled teleprompter. ■ 
Protel is also supping TV- 
A*f. the new independent tele- 
virion breakfast network: -with 
'another system ‘ which centre Is 
•♦h® rejection: recording and 
rpTimilatinn of commercials. 

The ’ Rritish Technology 
Group, part of tti* National 
Enterprise Board, has agreed 
te invest £128.000 in ProTel. A 
further £125.000 is beine 
invested by Electra Risk Capi- 
tal. , 

Barclays Bank is lending thf 
company £75,000 under the 
.■Gqvernrnentis Small Firms 
Loan Guarantee Scheme, while 
the Industry Department is pro- 
viding a £60.000 grant under 
the Microprocessor Application 
Project. 


Family planning saves 
public money, says report 


BY RAYMOND SNO0OY 


SPENDING ON family planning 
is very cost effective and saves 
the welfare state a lot of money, 
says a study published yesterday 
by the ’Policy" Studies Institute. ” 

For some people, .expenditure 
of £100 Is family planning 
resulted in a saving of more 
than £500 in use of welfare ser- 
vices as a result _of_ unplanned 
pregnancies and unwanted chil- 
dren. Mr William Lain? argues 
in Family Planning: The Bene- 
fits and Costs. 

Mr Laing, health stories 
officer of the Royal Institute of 
Public Administration, said 
yesterday family planning was. 
one of the few areas of the’ 
health service which both gave 
a benefit to clients and saved 


money. 

- All the available evidence was 
that an unwanted child and its 
parents, received substantially 
'greater public sector support 
than average. 

Taking into account the extra 
cost of supplementary benefits, 
residential child care, sickness 
benefits and abortion involved 
in unplanned pregnancies. Mr 
Laing argues that each premari- 
tal conception avoided costs the 
National Health Service £250. 
but saved the public sector 
£1.340. 

Family Planning: The Benefits 
land Costs, by- W: A. Lalnn: 
Policy Studies Institute, 1/2, 
Castle Lane, SW1. £2.75 post 
o aid. 


Radiation advice for hire 


THE National Radiological Pro-, 
tec don Board, the public watch-? 
dog reporting to. the Department 
of Health on personal exposure 
to radiation, is offering to act 
as. radiological . protection 

adviser to companies requiring 
one under regulations relating 
to ionising radiation. 

The board says it Will provide 
advice and services in all aspects 
of radiological protection, -which 
will be required soon hy the 
Health and Safety Executive. 1 


It believes its charges .will 


. compare . favourably with the 
cost of employing a. full-time 
adviser for many small com- 
panies using ionising radiation 
for inspection or sterilisation, or 
as part of their product 
Regulations bringing British 
Industry into lines with EEC 
regulations will require em- 
ployers to have the -services of 
radiation protection advisers. 

:Adoice on radiological proteo- 
; teetUm. Aixri table /rwn-th* * B : 
-formation ~ Officer, . Nation^* 
Radiological Protection Board, 
HcnceU, Bidcofc.jQafflx. 









Financial Times Thursday May 13 1982 


UK NEWS - LABOUR 



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TUC says | 
Treasury 
‘rigging’ 
forecasts 

By John Lloyd, Labour Editor 

^ THE TUC Iras, accused the • 
n Government ofritamg its fore- • 
.... castins mechani^vm — the : 
: Treasury model — in order to i 
... accord with its political beliefs’, i 
.V. and to disguise the effectiveness 
'1 of alternative economic strate- : 
«ies. 

% The charge was made vaster- : 
rr day in a paper presented so the . 
TUC’s economic committee. In : 
essence it says that while run- 1 
nina TUC proposal? to boost i 
r*- public sector capita! spending ; 

by £2bn and to cm VAT bv 2 5 ‘ 
U. per cent — throush rhe model 
for lost month'* meerin? of the 
National Economic Dewlap- ; 
*1 nreni Council, the TreaFtjry * 
-v obtained pessimistic results for 
*' the medium - term by : 
p- deliberately altering "key ' 
variables to achieve these 
results. 

^ The results obtained by the 
Treasury are considerably less • 
J . bullish than these which would 
have been obtained had the ; 
model remained unchanged. ' 
••' according to I he TUC. 1 

„ In particular, the changed 
model shows the exchange rate 
rising by O.P per cent after four ■ 
..." year's on the £2bn boosi 
, example, rather 'than falling by 
1.9 per cent on the unchanged ' 
assumptions. 

Again, the changed model 
: shows output falling after five • 
years by 0.7 per cent, against a ; 
rise after four years (no fifth i 
year figure available) for the ! 
unchanged model. ; 

The TUC believes three cru- i 
cial assumptions have been 
changed. First, it says that j 
*■ confidence ” effects have been ; 
introduced, where* the announce- 1 
mem of an expansionary pack- 


Varley hints at Labour-union pact 


BY DAVID GOO OH ART, LABOUR STAFF 


THE SHAPE of future Labour 
Pany-TUC plans on incomes 
policy and I he reform of col- 
lective bargaining was hinted 
ai yesterday by Mr Eric 
Varley, former Labour Em- 
ployment Secretary and a key 
figure fn parly liaison with the 
trade onions. 

He told an industrial rela- 
tions conference in London: 
“The movement away from 
the centre towards local bar- 
gaining is a healthy develop- 


ment that has my lull 
support." 

Sir Varley, an MP sponsored 
by National Union of Mine- 
workers and mooted as a pos- 
sible future Chair map of the 
National Coal Hoard, quoted 
the successful example of local 
bargaining in the mining 
Industry. 

He said the development of 
local bargaining and incentive 
scheme on top of national 
agreements was the best way 


to reform industrial relations. 

The next Labour Govern- 
ment w ould repeal I he present 
employment Mil but would 
not amply return lo square 
one. “ We will have ro bargain 
ith (be trade unions and ask 
what they con contribute to 
Industrial relations.*' 

Senior Labour Parly and 
TUC leaders believe that the 
party must, when it next 
forms a Government, not 
merely repeal Tory employ- 


ment legislation hut ini re- 
duce a new framework 

The maximum stress will 
he put on flexibility and local 
bargaining, in an attempt to 
ensure (hat local frustration 
do not build up as under the 
- social contract ** of 1971-7$. 

Mr Varley said that the 
shape of a new relationship 
between a Labour govern- 
ment and the unions had 
been emerging during the 
winter of 197R-79. 


Health staff 
warn on 
disciplinary 
action 

THE SECOND largest health 
service union yesterday 
threatened to call all-out loin! 
.-■irrkes if :ts members arc dis- 


Left activists set up 
pressure group 
in tax staffs’ union 

BY PHILIP BASSETT, LABOUR CORRESPONDENT 


in the 
Feder- 


Tebbit admits Bill may cause difficulties 


BY OUR LABOUR STAFF 

MR NORMAN TEBBIT, 
Secretory of Stole for Employ- 
ment, admitted yesterday that 
the Ejiiploimpiii Bill was 
extremely complex and migiil 
cause difficulties of interpreta- 
tion. 

He said he would like to 
introduce a cunstriidaung 
measure in Parliament to amal- 
gamate an\ clarify ihp last 
three years of employment 
legislation but added that this 
would not he possible in the 
Jjfe-tuue of this parliament. 

Speaking at an Industrial 
Re] a' ion a Services conference 
in London, he sounded a 
cautious note about the possi- 


bility uf a further round of 
legislation which has been 
predicted for 1934. 

•* Many people have been 
urging me ro reform the 
internal arrangements of i rules 
unions but I have approached 
this area with great caution. 
He said he hoped unions would 
reform (hem-tclves without the 
need for legislation. 

On the controversial new 
clause specifying corporate 
trade union liability fur unlaw- 
ful industrial action, lie em- 
phasised that unions could nor 
escape responsibility by simply 
nut endorsing act inn taken by 
local officials. He said; “A union 


must positively din la nee itself 
from a local official if he is act- 
ing unlawfully, otherwise it will 
be assumed he has union ha ek- 
ing." 

Mr Tphbit said the law was 
nol being returned lo where it 
stood immediately after lire 
Tnff Vale judgment of 1901 
when neither officials nor unions 
had any immunity from civil 
action. “But immunity must 
never be greater than is neces- 
sary fn ensure that trade unions 
can function properly and effec- 
tively." 

Mr Tehhit then turned to the 
Jh ret* changes In clause seven 
of the Bill. On dismissal m a 
strike, he said: " The l.iv: will 


simply be returned !■» what we , 
thought it was before the 
surprising House of Lords 
judgment of 1JJ7S." 

The Lord*’ judgment specified 
that rf during a strike some ‘ 
workers: returned to work and 
other* remained out an ent- ■ 
plover could nut dismiss those : 
Thru stayed our wirhuitT expos- ' 
ing himself to claims for unfair i 
dismissal. : 

Mr Eric Varley. tie* former : 
La hour Employmenr Secretary. ' 
lold the conference: ■'Thjsi 
legtstotinn wtM dr-ve trade . 
tin inns from the runferen.f 
ritoins in Whiidtai-I to liie i 
ilemonsiraiiuns in Trafalgar : 
Square.” i 


FRESH signs of traditions Ur 
neutral uniun? being pressed to 
ciplined for taking industrial i a political line appeared 
action in pursuit of their 12 I yesterday with the founding of 
per cent pay claim. i ‘ a broad Left group 

The 235.tWtVstrong Conf’riera- i Inland Revenue Staff 
ticn of llealih Sen'ice J otion 

Employee? tCohse: siiiti mem- Political polarisation has 
hers in -weraT ar.»a« were ! been growing for smvie time in 
n-ccsvine mr-nagemenl threats » 2ite IRSF. particularly since the 
or disciplinary proceedings j 21- week -.trikes in the Civil 
which could fend to d.sms.-saJ. ; Si ii n’ke last year over pay. 'The 
The area.* included Bristol, j was tj| t . t »niy union to 

Kent and Scotland. j oppe-te the settlement. 

“If any »if oar ntem/jers n r..- riis- 1 Left wingers hnlii at least six 
ciplined :he nafinna! i*:;tru- j scats on lhe 13-striina faxes 
will h:«,-p »o consider v^-ry I «.vtiun uf the uniun's federai 
.-eriously withdrawing ,:!! -he' national executive. They include 
ntfRtbcrs, and the patient? ; two members of the Socinlist 
have to Ik.- relm-nieti ' Workers Party and a supporter 
somewhere «ud M r ! uf the Labour Party's Militant 

Alhi»ri Sp?n>v ick. Cf.hse i Tendency. 

gen^r:.! secretory. i The taxes section seems !n he 

Industrial action has so far been I dominant, though it can tech- 
desrined to maintain emer- •' nic’illy be outvoted by the eigut 
gi*:i i -■ services and the care nf ‘ lax colled ion seals and six 


Labour Party faces 
£750,000 deficit 


BY OUR LABOUR EDITOR 

UNION leaders believe that the 
Labour Party's £75u.OOO deficit 
will present the parly's organi- 
sation with a series of hard 
choices on staff numbers and 


(Tr 


to 

V 

rr^ 


age would shake -the markets’ 
confidence and increase interest ; activities. 

rU The TUC sms ,hw as,uniplloD ' ^ Z t VSS} 5S 

tence. the party requires 
between £2m and £3m lo fight 


-r; 

f- 


soon. 

A. meeting 1 yesterday of Trade 
Unions for Labour Victory — 
the organisation which brings 
together most Labour-affiliated 
unions to discuss ways in which 
the unions can support the 
party — decided lo call a second 


?di 

fens 


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L i : -7" 

...iiy" 


as meaning that the Government 
has programmed into the model 

the belief that the financial ihi* next General Election, which 
markets have confidence m the , bolh i abaUT and union leaders 
Government s trategy alone. . i^Iieve is likely lo be held 
Secondly, TUC officials believe i 
that the Treasury had changed j 
its assumptions about company • 
behaviour to show an increase : 
in interest rates — because of j 
a blow to confidence — working ; 
its way tbroagh much more j 
rapidly into reductions in out- ] 

- pur and employment. . -| 

« Thirdly, they allege that the j 
changed model has fixed public i 
' expenditure in cash terms so ! 
r ' that any Increase fn costs as j 
f' through inflation — leads to an j 
b / automatic reduction in the \ 

?■' volume of public spending, and j THE Govenunent-funded Advi- 
thus a further deflationary j sory. Conciliation and Arbitra- 
effeot. ; tion Service has underlined its 

The Treasury last night \ continued scepticism over im- 
accepted that the TUC was cor- . proveraents in the country’s in- 
rect in identifying that the i dustrial relations, 
fatter two of these changes had | annual report notes “ an 
taken place — it said that tbe^p j increase in measures to Improve 
was some confusion over the > working methods and the pro- 
first — but strongly domed that I ffuclrvity of employees” and " a 
the changes had been done in i willingness on ttte part of many 

employers lo inform employees 
and trade unions about their 
j financial position to a much 
greater extent than formerly." 


"summit conference" of parly 
and union officials to thrash out 
the inter! inked problems of 
finance, organisation and the 
political siruaiion. 

The summit, winch is likely 
to be held at the Woodstock 
education centre of the General 
and Municipal Workers Union, 
will take stock of progress since 
the Bishop's StortforU con 
fercnce early ibis year pro 
nounced lhat “peace hud broken 
out 1 ’ in the Labour movement 

The main issue is now the 
financial position. The union' 
emergency fund is only £40.000 
short erf its £250.000 target— 
but that is not much when set 
against the party's needs. 


Acas doubts on new law 


BY OUR LABOUR EDITOR 


f»3 

nr 

£.• 

ir 




any underhand way. 

A senior Treasury official 
stressed that while the 
changed " model was still the 
one officially available, the 
changed one would shortly be 
released. The changed model 
bad formed the basis of the 
Treasury's own work 


However, *' it remains to be 
seen whether they are short run 
consequences of the recession or 
whether they signify the emer- 


gence of a new and lasting 
trend." the report says. The 
test will come when the reces- 
sion ends. 

Mr Pat Lowry. Acas chairman 
said he believed lhat the 
employment legislation now 
going through the Commons 
would increase both the amount 
of work handled, and its com 
plexity. But The statutory duly 
of Acas to assist the resolution 
of disputes had not changed 
and it would not advise 
employers or unions to use, or 
abstain from using, the legis- 
lation. 

An obscure schedule to the 
legislation does ensure an un 
changed role for Acas. 


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NEW ISSUES May 12. 1982 


FNMA 


FEDERAL NATIONAL 
MORTGAGE ASSOCIATION 


$1,500,000,000 
13.75% Debentures 

Dated May 14, 1982 Due November 12, 1982 

Series SM-1982-Q Cusip No. 313586 LZ 0 
Non-Callable 


Price 100% 


$500,000,000 
14.30% Debentures 

Dated May 14. 1982 Due April 10. 1987 

Series SM-1987-F Cusip No. 313586 MA 4 
Non-Callable 


Price 100% 


Thedebentureeare the obligations of the Federal NatiofrafMortgage Association, 
a co^w^ion organized and existing under the laws of the United States, and 
■^S^SSSteaShonty conteined in Section 304<b> oMhe Federal 
National Mortgage Association Charter Act (12 U.S.G. 1716 et seq.J. 

This offering is made by the Federal Nalional Mortgage Association 
throughflsSemor Vice President-Finance and Treasurer wrththe assistance 
of a natonwide Soling Group of recognized dealers in secunties. 

Debentures will be available in Book-Entry form only 
■ Thera ^ will be no definitive securities offered. 


John JL Meehan 


Alien C. Sell 

Dfrecioc of the Fiscai Office 


Tfasnr&LincBmeitioppeQrsasamattercrtrBcorfonfy 


V auxhall jobs cut call 


FINANCIAL TIMES REPORTER 

VAUXHALL HAS told Us WHt 
while collar workers at its Elles- 
mere Pori factory that it wants 
to reduce the workforce i broach 
voluntary* redundancies and 
early reuremcnis. 

The company will mu say 
how hie a cut ii wants, but it is 
believer! to he between 200 and 
4(M) white collar and manual 
jobs. 

The staff ha\c rveeheri a 
letter from the management 
calling for volunteers as well as 
offering a limited numher uf 


jobs at Its Luton and Dunstable 
plants. Anil it offers Jenerous ■ 
removal expenses for those who ■ 
want to none south. 

The offer of jobs ai I.'Jtni] has : 
anscreri some unior 
there. Tliey want these jobs, j 
believed in total irtiOLM 4o. fo he.'-] 

offered to apprentices who are ' 
about to enmpletc rheir trjin- ' 
me in southern plant.-,. .1 

The letter. also outlines the 1 
position of the company and ilte ! 
need for the labour force 10 be | 
reduced. 1 


patterns already admitted to 
lio -oil al. Coh-e officials fee! 
the*.* could rot be held respon- 
sible for wha! miyit? hap- 
pen if members are discip- 
lined. 

Cobse. which beean its action 
on April 26. is taking a variety 
of local measures im-ludific 
iv.'o-hoi::* selective stop paces, 
ban-- on non-emergency ad- 
missions to hospitals, and re- 
fu>at to cover for absent 
scr.tor staff. 

The union's executive yester- 
day 7V. e its backing 10 the 
Tt'CV co-ordfn:i:.?d campaign. 
This also includes a nc* tonal 
24-hour strike next Wednes- 
day. follnwed by weekly 
nattnnnl two-hour stoppages 
from May 27 in protest at ptvy 
offer? uf T to. 6.4 percem. 

Several ex ecu Live members 
pressed for looser and more 
frequent stoppages, aud the 
union's action committee, 
which will meet within ten 
dc-ys. may consider stepping 
up the dispute. 


. valuation >eais, where polilical 
; aiiirnmcnt is nut yet apparent. 

1 Taxes representatives were 
billed as the main speakers at 
I last ni dr.'s founding meeting n? 
: the IRSF Natrona! Bread Lett 
‘ a: a hole! in Peebles, where 
the union's annual conference 
i.-» taking piace. 

Mr Dos Bailey, the new taxes 

• sect tun vice-president and an 
SWP nieipher. was due to speak, 
out Mr Tore. Christopher, IRSF 

| general secretary, railed a nisei- 
! in*.; of tiie union's executive, 
' v-hich Mi* Bailey would be 
; expected to attend, for the 
: same time. 

1 A broad left bulletin dreulai- 

• ins at rh? conference, insisting 
I that a •* strong and properly 
. organised broad left «rc<up is 
■ now essential within the IRSF” 
. Mates that the executive needs 
. lo be reminded cun-lentty nf 

• the di Picul iie« facing the union. 
‘ Ii puts as some of its major 
I piilirv objeiftives fiat-rale pay 
; increases, an annual pay con- 
! ference. a total overtime ban. 


the election of all full-time 
odiciab, closer links with other 
unions after last year's strikes, 
and union amalgamations. 

The left has already enjoyed 
unprecedented success at This 
year's conference in securing 
acceptance of some of these 

TAX STAFF voted yesterday 
fur a total ban un al! overtime 
uor.’-ttng in the Inland 
Revenue in a move which 
could delay further the 
Government's efforts to re- 
coup the lax still outstanding 
from last year’s 21-week 
strike in the Civil Service. 

The decision by the annual 
conference of the Inland 
Revenue Staff Federation in 
Pe.-iiles could also undercut 
auutlier motion passed by the 
conference urging the Govern- 
ment lu take further action 
against the estimated £4bn 
lax being lust in the black 
ecuutitn v . 

Left-wingers In the domi- 
nant Taxes Section secured 
the rejection, by 376 votes to 
295. of an executive-supported 
motion reaffirming opposition 
(o overtime us a substitution 
for jobs. 

Despite a warning by Mr 
Tony Christopher. IRSF 
general secretary, that it 
might well split the union, the 
conference passed by 367 
votes to 31>0 a motion banning 
all overt inte 

aims ncriHVst the wishes of- the 
union leadership. Flat-rate pay 
increase? were approved by 409 
votes 10 266. and yesterday the 
overtime ban went through by 
367 voles to 300. 

Union leaders believe the left, 
wiL' svi*k far-reaching constitu- 
tional changes in the union next 
year — a rule revision year for 
the IRSF— when Mr Bailey is 
ex peered to become the union's 
president. 


/This is the new 

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10 


UK NEWS - PARLIAMENT and POLITICS 


Financial - Times Thursday May 13; 1982 




stand on 
C farm price 

BY JOHN HUNT, PARLIAMENTARY CORRESPONDENT 



MK PETER WALKER. Minister 
of • Agriculture. yesterday 
strongly defended Britain's 
position in the latest Common 
Market row ocer l he Com- 
nfumty'- proposed increase in- 
farm -prices "f 10.6 per cent. 

. He toJd. the Comomns that it 
would he i "very major and 
disastrous departure from Com- 
munity praciice " if the other 
member, states were to impose 
such a settlement against the 
wishes of the UK. 

Mr Walker was making a 
statement to the House follow- 
ing the hitter dispute in Brussels 
on Tuesday when he successfully 
thwarted an . attempt to agree 
■tfve farm price rise bv a majority 
vote despite the objections, of 
the -UK. - 

Hp said yesterday, however, 
that he fell* sure Britain's F.EC 
partners would not make their 
continued support over the 
Fa Ik lands conditional on thy 
acceptance of the farm prcno^als 
nr on m ec ment of Britain's 
budgetary. difficulties. 

"He received brood support 
'or his pqiicv from Mr Norman 
Buchan. Labour’s agriculture 
.'spokesman. --But-- there was 
severe crilietsm from David 
Steel, .the. Liberal leader and 
Mr Robert. Maclcnnan. for the 
Social Democrat!;, who called 
for an early accept a nee of the 
price increase. 

Mr. -Walker rejected iheir 
demands as. “totally irres- 
ponsible” and said the leaders 
oTthe.- National Farmers Union 
were showing a much more 
responsible attitude than the" 
SDP- Liberal Alliance. 

Mr Buchan asked hint to deny 
suggestions that Britain would 
accept the iu.fi per cent increase 
once there was a settlement of 
the total budge tar: - package. 

Mr Walker refused. He said 
it depended on the total balance 
of vhal was offered and how 
it benefited the British con- 
sumer in such things as butter 
subsidies and the beef and 
sheep premiums. 

Mr Walker also assured him 
that no Community Minister had 
implied that there should be a 
link between farm prices and 
the Falkland* question. It 
would, said Mr Walker, be 
absolutely monstrous if the 
farm review were to be affected 


Howell attacks Labour’s policies for London Transport Foot urges 

party to 
aid ‘doves’ 
in Cabinet 


by matters such as this. 

Mr Steel warned him to be 
extremely careful of the 
friendly embrace from the 
Labour front bench. He said 
there was dismay in the farm- 
ing community lhat there had 
been no settlement on agricul- 
tural prices. 

The tying up of the wider 
budgetary problems to the 
farm settlement was not 
accepted by the Liberals. Our 
Community partners felt it was 
wrong said Mr Steel, that 
Britain should .try to re- 
negotiate its membership every 
year during the price review. 

Mr Walker retorted that be 
was "shocked and surprised" 
that the Liberals would agree 
to a price fixing without hating 
any idea of what the total cost 
of the broader package might- 
be. 

Mr Maclennan said the 
Social Democrats shared the 
concern of Mr Steel about the 
adverse effects on farm incomes 
of further delays in reaching a 
price settlement — particularly 
on commodities whose market- 
ing year began at the beginning 
of April. 

He pointed out lhat the farm- 
ing community had suffered a 
massive loss of income in 
relative terms over recent 
years. 

There was laughter when Mr 
Walker replied that in view of 
last week's local elections — m 
which the Liberals won more 
seats than the Social Democrats 
—the SDP was now, giving 
more support to the Liberals 
in the Commons. 

An anti-marketeer. Mr Teddy 
Taylor tCon Southend East) 
warned to know what options 
were open to the Government 
if Community ministers ignored 
the Luxembourg compromise 
and went ahead with farm price 
increases by a majority vote. 

Mr 'Walker agreed on the 
importance of the Luxembourg 
agreement whereby a policy 
cannot he imposed on a mem- 
ber state which maintains that 
it is against Its national 
interests. 

‘‘If the Community departed 
from that it will be dangerous 
for the position of the EEC as 
a whole,” he said. 


BY IVOR OWEN 

SIR DAVID HOWELL, the 
Transport Secretary, launched 
another attack in the Com- 
mons yesterday on the Labour- 
controlled Greater London 
Council, which he said 
showed a tack of urgency In 
improving the efficiency of 
London Transport to reduce 
bus and tube fares. 

He refused to accept that 
the council is hampered by 
legal constraints arising from 
the Law Lords’ judgment 
outlawing its “Fares Fair” 
scheme, and maintained that 
there were enormous oppor- 
tunities for cutting costs and 


increasing efficiency. 

He described the level of 
fares as “ certainly too high.” 

He confirmed that the 
Government is considering 
proposals for changing the 
relationship between London 
Transport and the GLC. in- 
cluding the possibility of a 
“ divorce.” 

The first requirement was 
that the GLC should stop 
seeking a change in the law 
to reverse the Law Lords’ 
derision and -get on with the 
opportunities open to it to 
cut costs and reduce fares. 

“If not, more fundamental 


Worsening poverty trap 
low priority, Treasury says 


EY ROBIN PAULEY 

THE POVERTY TRAP is get- 
ting worse every year and there 
is no chance of an immediate 
Improvement, the . Treasury 
admitted -last night 

Mr Peter Middleton, Treasury 
deputy secretary, told the 
Commons Treasury and Civil 
Service committee _that the re- 
sources did not exist to 
eliminate the problem 
immediately, although he was 
optimistic that it could he 
tackled within a few .years. 

The poverty trap • had 
worsened during the 1970s, 
years when the UK economy 
was in great difficult}’. The 
most that could now realistically 
he hoped for was gradual 
progress when resources 
permitted. 

He added that he did not 
think the poverty trap was very 
high up the list of priorities. 

During the past 25 to 30 years 
levels of entitlement to means- 
tested benefits— supplementary 
beneSt and. since 1971. 
family --income supplement—., 
had broadly increased in line 
with the increase in nominal 
money earnings. Tax thresholds 
had generally increased broadly 
in line with the increase in 
prices, which was smaller than 
that in earn/Rgs. 

The result was that the gap 
between the thresholds for tax 
and benefit had been com- 
pressed. At the extreme there 
was Hide difference between 
the income of those in work and 
those out of work — the unem- 
ployment trap. Some of those 
drawing means-tested benefits 
may derive little or no 
advantage from a marginal 
increase in income — the 
poverty trap. 

Efforts to maintain and 


improve the level of benefits 
had, been paid for by increased 
taxation, extending to quite low 
levels of income. 

--It- was important to realise 
that the poverty trap deepened 
because of measures taken to 
alleviate peverty and not 
because of measures taken to 
alleviate the poverty trap itself, 
Mr Middleton said. 

The poverty trap could be 
eliminated at a stroke by 
cancelling the benefits, particu- 
larly family income supplement 
but the penalty would be to 
worsen poverty. 

Another alternative was to 
generalise benefits, but that 
would require a large borrow- 
ing requirement, and the 
problem would not really be 
solved because higher inflation, 
reduced economic activity, and 
higher interest rates would help 
neither the poor nor anybody 
else. 

A third solution was the 
transfer of resources, but like 
aZI methods of redistribution - 
switching tax relief on houses 
to benefit the poor or changing 
the structure of personal and 
direct taxation would both alter 
someone else’s marginal tax 
rates and introduce major 
changes into the structure of 
the economy.. 

Mr Middleton agreed with 
Mr Richard Wairrwright (Lib., 
Colne Valley) that more 
resources would be available for 
tackling Ihe poverty trap if 
£3bn of the estimated £4bn to 
£6bn in revenue -lost by tax 
evasion could be collected. 

Bot Mr Middleton was 
evasive when asked whether the 
Treasury would sanction 
increased staff allocations to the 
Inland Revenue 


changes will have to be con- 
sidered.” he warned. 

Mr Howell indicated that 
before framing its proposals 
the Government wished to 
take account of the report 
soon to be made by the Com- 
mons select committee on 

transport. 

He made it clear that .a 
separate transport authority 
for London, possibly directly 
financed by the ratepayer and 
the taxpayer, was likely to be 
among Die options considered. 

Mr Howell told . MR 
MICHAEL NEUBERT (Con 
Romford) that in 1930 Lon- 

MP d ies in 
safe Labour 
constituency 

By Our Political Editor 

A BY-ELECTION will be held 
in a traditionally safe Labour 
seat in central Scotland follow- 
ing’ the death" yesterday of Mr 
James Dempsey, 65, member 
for Coatbridge and Airdrie- . 

Mr Dempsey, who entered the 
'Commons in 1959, had a- 
majority of 15,156 at the 
General Election. One of bis 
recent concerns was a campaign 
against glue-sniffing. 

He had been ill for some 
time, and had announced his 
intention to retire at the next 
election. 

The local Lebaur. Party in 
Coatbridge had already selected 
a successor, Mr Thomas Clarke. 
He is on the centre-right of the 
party and has long experience 
In local government in Scotland. 

Labour should have no 
trouble in holding the seat. -The 
party did well in last Thursday's 
local council elections. - 

At the general lection Mr 
Dempsey had 27.598“ votes; Mr 
John Love (Tory 12,442; and 
Ms Mary Johnston" (Scottish 
Nationalist) 5,620. 


don Transport bos costs were 
40 per cent higher than 
those of the provincial pas- 
senger transport . authority, 
and their vehicle miles per 
staff employed were far and 
away the lowest compared 
with the passenger transport 
executives, municipal opera- 
tors' and the National Bus 
Company. 

O Mr Howell said he hoped 
to make an announcement 
“shortly” on the Govern- 
ment’s proposals for increase 
ing the permitted maximum 
weight of lorries. 


In a fresh bid to overcome 
the objections voiced by Tory 
backbenchers he emphasised 
the increased resources being, 
devoted to keeping, jugger- 
nauts away from villages and 
high streets by building by- 
passes. 

Mr Howell stressed that the 
objective was to imprawe 
industrial efficiency by per- 
mitting. heavier payloads 
without increasing the size of 
existing containers. 

He also promised stricter 
enforcement of regulations 
limiting the routes open to 
juggernauts. 


Lloyd’s amends immunity 
clause at Lords’ request 


BY JOHN MOORE, CITY OORRSPONDStT 


A LORDS select committee has 
forced Lloyd’s of London, to 
amend a major, clause in ' its 
BUI ■ intended to improve .the 
.insurance. . market’s . self- 
regulation. 

The L loyd's Bill includes 
immunity - for ■ a * 1 * * . new . ruling 
council from legal suits for 
damages brought by any of its 


The committee - chairman 
'Lord Nugent of Guildford, had 
already, told -Lloyd’s that the 
“matter of immunity is some- 
tiling on trtzteh parliamen- 
tarians are extremely sensitive, 
and the narrower you are able 
to draw your clause the less 
difficult it is for parliament to 
accept it.” 

Lloyd's accepted . Lord 
Nugent's suggestion, that the 
clause should be amended. 
Yesterday, Mr Peter Boydell QC, 
counsel for . Lloyd's, told the 
committee that the clause will 
.be amended so as not to prevent 
actions- for defamation. 


The defence offered by quali- 
fied privilege in any libel action 
would be as wide as the protec- 
tion offered by the immunity 
clause, he said. . 

During yesterday's proceed- 
ings Mr Peter Miller; appearing 
for Lloyd’s, said the immunity 
issue had "excited great interest 
outside Lloyd's” but not inside 
Lloyd's: 

Not one question on the issue 
of immunity had been raised by 
any of the market associations 
at Lloyd’s, he said. He admitted 
that the implicatibu of immunity 
— which would restrain suits for 
damages even where the new 
council had. been negligent— 
“must be- faced squarely.” 

Cross examined by Mr Robert 
Alexander QC. representing -a 
number of Lloyd’s interests 
opposed to the immunity clause, 
Mr Miller said he did not 
accept that there had been a 
ground swell of opinion against 
immunity. 


No more jafl 
for beggars 


Chunnel ‘a dead duck’ 
Kent MP tells House 


PEOPLE convicted of begging 
or sleeping rough can no longer 
be sent to prison under pro- 
posals approved- by the Com- 
mons yesterday. MPs passed 
without a vote a Government 
amendment to the Criminal Jus- 
tice Bill to remove power of 
imprisonment from the courts 
when dealing with certain 
offences under the 1824 
Vagrancy Act. 


FINANCIAL TIMES REPORTER 

THE CHANNEL tunnel is a 
“ dead duck ” Mr Boy Moate 
(Con, Faversham) claimed in 
the Commons, yesterday. 

- But Mr David Howell, Trans- 
port Secretary,. said no decision 
had been made on .the tunnel, 
though he was ” anxious ” that 
a decision should be reached. 

Mr Teddy Taylor (Con, South- 
end East) said there was no 
need for it. It Was supported 
only by consultants, contractors 


and fanatical supporters of the 
Common Market 

Mr Donald Stewart (SNP, 
Western Isles) said it was an- 
other “ piece of grandiose 
lunacy” Hfce Concorde. ‘“The 
parts already dug should be 
blocked with Concorde at each 
and and cemented over,” he 
said. 

Mr Moate asked Mr Howell: 
“Don't you get a very distinct 
odour of a very dead dock? " 


By Margaret van Hattem, 

LABOUR LEADERS yesterday 
threw their weight behind the 
Government’s .efforts to nego- 
tiate a Falklands settlement 
through the United Nations, 
calling on party members to 
support the “ doves ” — Mr 
Francis Pym, Foreign Secre- 
tary, and Mr William White law. 
Home Secretary, in the inner 
Cabinet 

There was also some indica- 
tion that Labour might be pre- 
pared to go along with a 
controlled invasion of the Falk- 
land Islands to assert a British 
presence there, if it were felt 
this would aid negotiations. 

Mr Michael Foot attacked the 
Labour group, led by Dame 
Judith Hart and Mr Tony Beam, 
which is calling . for a tnice, 
saying this would “ hand the 
gamp to General Galtieri on. a 
platter." 

Speaking at a meeting of the 
Parliamentary Labour Party, 
Mr Foot said that if Labour 
now withdrew its support for 
the British task force, it would 
lose all credibility and all 
chance of exercising a moderat- 
ing influence 

Mr Denis Healey, Labours 
deputy leader, also attacked tiie 
Hart-Benn group, adding that 
Mr Bean's “ludicrous” and 
“ fantastic " suggestions that 
the Government was bent on 
all-out war and - might use 
nuclear weapons were “a dis- 
grace to the party." 

Mr Healey said Labour’s con- 
sistent ''pressure had already 
produced a marked shift in Ihe 
Government's position. 

The government now accep- 
ted that the UN - had a role 
to play in finding a settlement; 
that negotiations: with. Argen- 
tina could begin, and a cease- 
fire could be declared, before 
the final withdrawal of Argen- 
tine troops; that the UK would 
not be sole administrators of 
the islands after withdrawal; 
that the question of sovereignty 
was negotiable; and that the 
islanders should not have a 
veto on the outcome of nego- 
tiations. • 

In view of the present 
struggle, between hawks and 
doves in the inner cabinet and 
the difficulties the Government 
would face in persuading its 
back benchers to accept further 
compromises, Mr Healey sug- 
gested it would be irresponsible 
for Labour now to abandon the 
doves. 


COMPANY NOTICES 


TIGER OATS ANP NATIONAL 
MILLING COMPANY. LIMITED 
ilntarporatcd in me Renutrtic of 
Sow tii. Africa' 

NOTICE TO 

S.f PER C?NT CUMULATIVE 
PREFERENCE SHAREHOLDERS 


■JOTJCE IS HERF.5 f GIVEN tn»t Dividend 
76 il - 'Z‘‘r. ser * nr urn for fh» 
lelf.vcar rnlmn JO:h Jure 1932. 
ra; to S.S t-nts per ihar* Uss SM" 
ItclJfeP paevbic lo noiocr* cl S.S see 
en: ruminative rreltrcnee sna'es. 

MiSKrci <n lie bools o> ihe esmoto* 
! the close ol business o« i!u» 4H, June, 
Mil. 

he dividend l* declared >n the currency 
i* the Rcpl&IIc of South Africa and «»c. 
aril vll be Bested bv the comoanv t 
-anjfrr KVeltrms Sau&i &lr*ea and in 
h« United Kingdom, on or about *ny 
13*h July. 

Snidends ravablc Irom me Umted K'ng- 
lem w.fl be said in Uni|.-i Kingdom <ur- 
■ncv. Shareholders Paid Irom the Um-.ed 
Sirtgdom wUi receive me sterling eautva- 
rnl of the rand ru-retirv value ol fnw 
iividend r" 21sl JuN. 1932. <•»* appro- 
■i-ia-o M«*s 

"he transfer brrt-- and registers of mem. 
ic-s **«i| be 'Irsed from tor 5m fo mg 
(Hi Jn-I- ms,; bo'h 4l'l inclusive 
Tie dividend Is vibleer to the decoction 
■I 14:961'., Non-P.c-.i 4 e"t JlurrtallPrV 
"a, in the wr of mca* shar»hoid?rs 
-hcs* idd-r-s"s are outS'de the Reeubfie 
il South Africa. 

By eracr of t"- h-ard 

E. P. STEELE. 

Secretary. 

.onHc* 1 

10 Ho'ho-" Viaduct, 
nnden EC1P 1 AJ . _ 

In ■ ted K-ngdcm Otoe? ef the Transfer 

Ih-rirr P.L.C.. 

>,0. Bov 102. 

■ barter House, 

»«rU Street. 

\sh»i?-o 

r.er TN24 ?FI3. 

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NOTICE OF 

annual general MEETING 
NOTICE 15 HEREBY GIVEN that Hit 
Elohth Annual General P-MPi'* 

Assurance Society will be held >n fit** 
Museum Slide. Effingham ParV Cnothorne. 
West SuKitv HH10 3EU at 11.00 am on 
Friday, 25th 

AGENDA 

1. To tnnftrm ,he ainontmnt of Mr 
Peter E\T as a Member el the Com- 
mittTf at Management 

2. To re -f tel Mr R.’-mcnd Foreman *5 
a Member eu the Comm it tec ol Mar. 
anc merit. 

3. To tiaonrt any ether ordinary busme*s 
Ct the Saclctv. 

By Orocr o* the Committer r* 
Manjnrm— 

J. R. Waterman. Sacreierv. 
W-TO. East Street. 

Horsham. West Sussex RH12 1HX 

6tn Mav. 1952. 

NOTICE TO HOLDERS O r 

EUROPEAN DEPOSITARY RECEIPTS 
fEDRs) IN • 

KOMATSU LTD., TOKYO 

Wr are Bleascd to confirm that crplss 
of the Annual Report tor the year e-rf"* 
December 31. 19B1 of Komitsu Ltd.. 

Tokyo, and Consolidated Subsidiaries, are 
non available to EDR Holders ucon aeo"- 
catlon to the following -giver-., 0 n agents. 

Citl^anV Bran-hcs in Amsterdam Fran' - 
furt. Brussels. Paris and Milan and at - 
Citibank r Luxembourg! 5.A.. Lu**m- 

houra: 

Kredinlhanb 5. A— Lu»cmti>jijrgealie. 
Luxembourg. 

CITIBANK « A . 
Depositary. 

335 Strand 

London WC2R 1HB. 

May 13. 1982. 


FRENCH 68 


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CLUBS 


; LSSAt. WOTICES 

j TO: D. G. GOLDBERG (Mste) 

I of 3 Esdlnrdbury. London, WC2N 4BP 

j TAKE NOTICE that an action has b*en 

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rmaest 



Thatcher’s power base steps up pressure on Falklands crisis 

The right fights a sell-out 


REPORTS from New York 
yesterday morning that a com- 
promise solution to the Falk- 
lands crisis might be about to 
emerge from the UN resulted 
at Westminster in an immediate 
escalation of the undercover 
activity of the Conservative 
right. 

For the past few days, Ss the 
implications of the Govern- 
ment's readiness on Friday to 
accept the Peruvian proposals 
have begun to sink in, Tory 
right wingers have been using 
the elaborate communications 
network o{ the Conservative 
back benches to put pressure on 
the Government not to com- 
promise on its basic negotiating 
position. 

The message has gone out 
from a number of private meet- 
ings and more informal con- 
tacts with the whips, that many 
Tory MPs would be very un- 
happy with anything resembling 
a sell out, and that they looked 
to the Prime Minister to resist 
one. 

Guardian of the 
PMPs conscience 

A small group of right 
wingers has even threatened to 
resign the party whip if the 
Government goes too far to 
accommodate the Argentines. 

Resignation is an almost un- 
forgiving sin in a party which 
sets such store by loyalty as 
the Conservative Party. But as 
far as the right wingers are 
concerned, such threats are not 
a mark of disloyalty, for they 
are convinced for the most part 
that all they ore doing is 
reinforcing the Prime Minister's 
own views, and strengthening 
her ability to withstand the 
dove-like influences of the 
Foreign Office. 

The right is Mrs Thatcher’s 
power base. It got her elected 
In the first place and she 
would be in great difficulty in 
continuing as leader without it 

In the past, it has helped 
sustain her against the wets in 
her battles over trade union 
reform and economic policy. It 
regards itself as the guardian 
of her conscience with the 
freedom to say the things she 
would really like to say her- 
self if she were not fettered by 
Government. •- - 

Bat in this situation the right 
could in theory pose a far 
larger problem for Tfirs . 
Thatcher than her traditional 
opponents on the left -of the 
party by restricting her room 
for diplomatic manoeuvre, 

The right • is a., curiously 
amorphous group in -the Tory 
Party, bringing together the . 
libertarians, the authoritarians, 
the monetarists, and the plain 
old fashioned. 

Precisely how ‘ Jmse- it is 
within the parliamentary party 
depends of course where you 
put the centre of the spectrum, 


Elinor Goodman on the domestic 
threat to diplomatic hopes 


but in rough terms about a 
third of Tory MPs find them- 
selves labelled right wing. 

Within this crude classifica- 
tion are people with very differ- 
ent views and styles. On the 
one hand there are the tradi- 
tional, romantic imperialists, 
who are deeply, and emotion- 
ally, patriotic, and who yearn 
for the days when Britain really 
was great. 

They care passionately about 
the defence of the realm, and 
have long been suspicious of 
both the Foreign Office and the 
BBC. The events of the last 
four weeks have merely con- 
flrnje dtheir worst fears. 

According to one left winger, 
they are the kind of people who 
would ” stand up in the cinema 
if the national anthem was still 
played and believe it should 
be.” 

They include HPs Mke Mr 
Julian Ameiy, Sir Bernard 
Braine, Mr Alan Clark and at 
least two doze nohters who have 
regularly stood at Question 
Time over the past month to 
remind the Prime Minister of 
the Government’s obligation lo 
the Falkland Islanders and of 
the immutability of sovereignty. 

Gentlemen, rather 
than players 

This group often ' lakes a 
fairly authoritarian line on 
'social issues-^-many, hut not all, 
voted for the restoration of 
capital punishment this week, 
and most are in favour of con- 
trolling immigration. 

But many of them do not go 
along with what are now sup- 
posed to be the accepted views 
of the right on the economy. 
They tend, as one of their 
number observed. to be 
“ gentlemen rather than 
players," and havj a rather 
paternalistic - approach which 
sometimes leads them down the 
road to govenunent interven- 
tion and public spending. 

Mr Maurice -Macmillan for 
example, in some ways a 
member of the old imperialist 
guard; but he disagrees with the 
orthodox Government line bn 
.the economy. 

Another, sub-group within the 
right are (he nationalist ■* Little 
Englanders". Tike Mr John 
Biffen the Leader of the House. 

They cafe deeply., about 
parliament as an Institution, 
tend to be. opposed to tha EEC 
and other than on race, they 
would have a lot in common 
with Mr Enoch -PowelL 

Their view" of Britain’s rote 
in the world,, however, is more 
luqdfest .than that of the old 

romamlc'rigEL' “ 

Then there is the new mone- 


tarist right, ■ from which Mrs 
Thatcher herself emerged. They 
share the Prime Minister’s view 
of the economy but tend to take 
a more pragmatic line on inter- 
national affairs. 

Privately some wonder what 
Britain is doing so close to a 
full scale military conflict in the 
South Atlantic. 

In terms of the Conservative' 
Party they are the ” new breed " 
Often they come from a very 
different background from the 
old Conservative squirearchy 
and have tittle lime for what 
they say see as the “fuddy 
duddy sentimentalism ” of the 
old right.. 

In this category come minis- 
ters like Mr Norman TebMt, 
Mr Nigel Lawson and Mr Jock 
Bruce Gardyne. 

Voice of the party 
in the country 

Finally there is wbar might 
be called the “populist right" 
These are the MPs whose names 
frequently appear on House of 
Commons motions like Mr Tony 
Marlow, Mr Nicholas Wrnterton, 
Mr Michael Brcrtherton and Mrs 
Jill Knight and who can be 
relied upon to comment on 
practically any issue. 

Lake the Labour Left, they 
represent the views of party 
activists, and .see themselves as 
the voice of the Conservative 
Part}' in the country. 

They are very loyal to Mrs 1 
Thatcher, and speak Che same 
language as her. Ob the eco- 
nomy, for example,, they set 
great store by “ good house- 
keeping,” and on social issaes, 
they constantly stress, the im- 
portance of the family, and 
discipline. In many- ways, their 
views a re simitar to t hose of 
the old right, but they tend to 
be brasher and younger. 

All the classificatkms are 
very blurred at the edges. 
What they all have'in common 
is an admiration for. Sirs 
Thatcher. - 

Until now It has always been 
thought she could rely on thenr 
to the Last. The pro&abiiity is 
that she' still could, and that if. 
in the event of. a negotiated 
settlement, die asks for their 
loyaJty she would get it. ‘ * 

Over the test few d«s% some 
right wingers have ' been 
worried that a “sell out” may' 
be being botched in New York, - 
but most, when pressed, say 
they are. still confident that Mrs 
Tbsafcfber wraM not aocept any- 
thing which was. detrimental’ to 
Britain’s interests. 

' Neveriheless, ‘’ :&e ‘ C&aveim- 
merit might brave had- trouble 


with some right wingers if ii 
had tried to sell parliament the 
Peruvian proposals, which or 
Friday, Mr Francis Pym said 
the Government would have 
been prepared to accept had the 
Argentines gone along with 
them. 

Among the old imperialist 
right, and the “poputisr” 
right, there is within the Tory 
party, a “war party” which 
strongly believes that Britain 
must give Argentina a “bloody 
nose ” • and punish her for 
aggression. 

Some of these MPs were last 
week in favour of bombing the 
Argentine mati&ind. Now that 
has been ruled out for the time 
being,; they have set their 
sighs on Britain r -establishing 
an open presence on the Falk- 
land Islands by tbe end of the 
week. 

Privately some are very 
doubtful whether diplomacy 
could, ever produce an accept- 
able settlement 

At Tuesday’s private meeting 
of' the back bench foreign 
affairs committee several 
speakers made dear that they 
thought it essential Britain 
demonstrated . her . military 
superiority before agreeing to 
any settlement. 

Like the entire -Conservative 
Party, Tory right wingers 
regard Argentine compliance 
with UN Resolution 502 as 
essential, and throughout the 
last three weeks they have 
' backed the Government’s posi- 
tion on the three main issues 
of withdrawal, sovereignty, and 
the need for any solution -to be 
acceptable to the isl&oders. . 

When it comes to a negotiated 
settlement, all have different 
sticking points. But their 
general attitude is summed up 
in the view that under no cir- 
cumstances should Argentina be 
rewarded for her aggression by 
winning any concessions that 
would not have been on offer 
. before the invasion. 

Argentina compared 
to a burglar 

The common analogy, used by 
MPs in the centre of the party 
-as well as on the right, is with 
a burglar. 

"You wouldn't offer, to let a 
burglar -share- your house after 
he had broken in,” they say. In 
the same way Argentina should 
not be allowed to “get away 
with any spoffs.” 

For this reason most argue 
that -a return to the "status 
quo” is essential, and have 
grave . reservations about any 
interim solution which would 
leave the Argentines with a 
token presence on the islands. 

Like the Prime Minister, they 
insist that there can be qo ques- 
tion of an interim settlement 
which * 'cedes! sovereignty to 
Argentina in advance. 







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ir 


Financial Times Thursday May 13 1982 

TECHNOLOGY 


= TWKMOtm 

EDITED BY ALAN CANE K lOOFUCSHTlNSUlAnON 


Sandvik prod for machine tools 


MACHINING .A piston crown 
using esnvemfbnat brazed 
carbide fora tools in four 
operations look mare thaw mu 
minutes. 

Sandvik engineers it, in- a 
computer-aided CNC lathe 
and indexable insert tooling 
reduced the cycle time to less 
than 15 xn metes. 

The result, says Sandvik. a 
happy, more profitable 
customer and Snst one of the 
reasons why It has set up a 
productivity centre for 
machine tool manufacturers, 
operators and all concerned 
with them, at Its Halesowen. 
West ?ittUauds headquarters. 

Sandvik. although the L'K 
offshoot of the Swedish 
organisation, has long been 
established at Halesowen. 
Many DIY people, probably 
now in their 40s, stilt have a 
Sandvik ripsaw in their tool- 
chest, but the company has 
gone a long way since the 
simple hand tool. 


BY MAX COMMANDER 


Now, the company says. It 
is into providing solutions to 
manufacturing problems. The 
productivity centre offers dis- 
plays of the latest machine 
technology, lecture rooms, 
computer programming facili- 
ties and at least six marhme 
tools all designed to prove 
that machine tool shops could 
be better and more profitably 
utilised. 

It ad sounds a bit like 
Utopia for the machine tool 
man, but, at least Sandvik has 
come up with a couple of good 
new ideas for the hard 
pressed Midland manufacturer. 

One is Sandvik'*? contract 
engineering arm— it operates 
under the title Sandvik 
Corom ant— which offers a 
complete service on machine 
tooling, obtaining better per- 
formance from existing plant 
or installing a new line. 

Sandvik is so confident of 
its expert Ke that it guarantees 
that a client using the service 




t-: ~ 


1 



*~‘y . 

WW> . 

-r* Jfc 


GAMET Products of- Cot - 
Chester. Essex, a member 
company of Use 600 Group 
has designed this add-on 
relating chuck which is suit- 
able for fitting to the tailslock 
of most centre lathes. 

The company claims that 
the chuck will not only elim- 
inate the need for centring 
workpieces anil the use of 
intermediate readies, but will 
also permit faster accurate 
maching of tube and bar. 


The chuck Is suitable for 
one off or high production and 
should - Interest companies 
Involved in shaft refurbish- 
ment 

It utilises three self -centring 
jaws capable of clamping oh 
the outside diameter or bore . 
of components from 35mm 
upwards. 

Garnet at Hythe, Colchester 
will provide full technical 
details on 0206 862 121. 









» ' Seminars and courses 

a for all levels of management — 

INDUSTRIAL ROBOTS & PROGRAMMABLE AUTOMATION 
fi June 1 982 - One-day seminar at PERA by Prof. WB. Heginhothara. - 
For production, technical and development directors and managers in 
manufacturing industries. 

INTRODUCTION TO ROBOT TECHNOLOGY 
7/8 September &30 No rembcr/7 December 1982— Two-day eonrae at 
PERA for senior design, production & maintenance engineers, covering 
basic technology and terminology. 

USING INDUSTRIAL PROGRAMMABLE CONTROLLERS 
3 June (London) & 16 September 1982 (Manchester) - One-day general 
appreciation course on systems and equipment. For design, development i 
and production engineers. 

Forfuif information, please contact the Booking Bureau. 
PBMTRAMfNG Production Engineering Research Association 
MELTON MOWBRAY LEICESTERSHIRE LE130PB 
Tel. (0664) 64133 Ext: 329 or 380. 


LESS INEFFICIENCY 

Less headaches 

•^“DESIGN 




Design &. Build offers you an entire prefect from a 
singlecompany instead of separate subcontractors. 
Which meansshorter lines of communications- 
f and greater efficiency. Contact John Baxter for 
more information. 

Phone 01-977 8755 

TheCa useway, TeddJngton, Middlesex TW11 OH W. 


will have his fee recovered 
in better productivity within 
a very short time. 

The company is also pinn- 
ing some of its hopes for the 
productivity centre on its new 
Varilock tooling range. This 
is demonstrated in the Centre 
on a Cincinnati V10 machin- 
ing cenl re. 

Automatically 

The company illustrates the 
Vari lock’s versatility by 
machining an aluminium 
flange using a range of face 
milling, drilling and tapping 
tools, as well as a Blh tapping 
chuck with slipping clutches. 

The machine is equipped 
with a Renishaw analogue 
touch probe loaded in the tool 
magazine and transferred 
automatically to the machine 
spindle. 

Another demonstration on 
the same machine shows how 


the time required for (he 
simple operation of drilling 
eight holes on a pitch circle 
diameter In a steel pipe 
flange can be reduced from 
two and a-half minutes to less 
than 50 seconds using a Delta 
drill instead of HSS twist 
drills. 

Primarily, the Sandvik 
Centre Is about tooling and 
not the machine tools them- 
selves. Summed up. Us about 
prodding users — they may 
have Italian, German, Ameri- 
can machining centres — Into 
becoming more efficient. 

Productivity or rationalisa- 
tion centre call it what yon 
will, but Us worth looking at. 
As an afterthought Sandvlk’s 
work on graphical numerical 
control Is also worth 
exploring- 

The company is at Manor 
Way, Halesowen, West Mid- 
lands, (021-550 1700). 




■ 

.k] 

±.AL>W-r*\ 





.. 






■ :. .a 


mm 


W7.rz 


j.' 1 


Ll 'Hm m 

Six machine tools are available at the Sandvik Productivity 

West Midlands. 


IP 


Centre In Halesowen, 


Sperry system to integrate manufacturing 


BY GEOFFREY CHARLISH 


Garnet rotating chuck 


A SYSTEM called UNI SCAD, 
which fnlly integrates computer- 
aided design (CAD) and com- 
puter aided manufacturing 
(CAM) has been developed by 
, Sperry Univac, based on the 
. company's 1100 series mnin- 
i frame and the V77 
i mi^lcomnuters, 

J The comnanv claims that for 
■ the first time one vendor 1e 
eddressing the entire process of 
designing and manttfncinring 
products. Says Vice President 
James Aldrich: “With UNTS- 
CAD all the pieces fit and the 


<|> Slowing 
the military 

ANYBODY who has flown by 
commercial airliner knows 
the roar as the pilot whips 
his engines into reverse 
thrust on landing. 

Military pilots have no such 
comforting experience. Their 
high performance engines ran 
too hot and too fiercely for 
such technology ; parachute 
brakes and conventional wheel 
brakes are the usual way of 
slowing a landing fighter. 

Where reverse thrust 
actuation systems have been 
used, they have been fluid 
controlled — usually using 
oil or (the mind boggles) fueL 
This at the business end of 
a jet engine touching 560 deg. 
C. - 

The actuation division of 
Lucas Aerospace thought it 
could build a. system running 
on air from the engine; 
lessening the fire risks, 
lightening and shrinking the 
engine overall and contribut- 
ing to its performance. 

The problems were fear- 
some ; for solving them, 
Lucas was rewarded this year 
with a Queen's Award for 
Technology. 

Its system, built into the 
KB 199 high performance 
military engine now slows 
down landings of the Tornado 
multirole combat aircraft 

It is now the only military 
aircraft with a thrust reverse 
actuation system. 

Aluminium alloy could not 
be used for the system 
because of the high tempera- 
tures involved. Sections built 
up of thin steel were used in- 
stead and the whole unit pnt 
together using clever brazing 
techniques. 

The same methods were 
used to solve the problem of 
corrosion caused by water 
vapour in the hot air. 

Then there was synchro- 
nisation of the overall 
system. The Tornado's two 
engines systems had to be 
deployed together to an 
accuracy ol one second. 

“We had to develop the 
bearing, everything,” Mr 
Christopher Wall of Lucas 
said. But a good many pilots 
may have reason to thank 
Lucas’s bold approach and 
safe landing. 

Abut Cano 



user Is not required to become 
the systems integrator for a 
group of incompatible systems.” 

Three levels of processing are 
involved. The 1100 mainframe 
runs large analysis pro trams, 
does the detailed calculations 
required for solid modelt'n®. 
maintains databases and per- 
forms complicated maths. 

Concurrently, the V77 mini 
handles design, draughting, 
numerical control interaction 
and mesh generation for finite 
element analysis. In this way 
the mini frees the mainframe 


which can thus support other 
business functions in addition 
to CAD/CAM. 

In the third level of distri- 
buted architecture, some of the 
processing work is taken off the 
mini by graphics terminals 
which C3n store display lists, 
perform rale’ll ’frans for room- 
ing, pvvrinfi and image rota- 
tion. an* support data tablet 
interaction. 

The terminal graphics soft- 
ware supports the Megarek 7200 
terminal, available either as a 
monochromatic vector refresh 


display or as a colour raster 
display. 

So far as the user is con- 
cerned there are four basic 
modules: design, engineering 
analysis, draughting and 
numerical control. 

The design module is used 
to define paris -rd combine 
them fo form assemblies and 
products. A user can creat“ 
new parts simply by altering 
a few design parameters on an 
existing Image. Solid modelling 
is also available. 

NASTRAN and other finite 


analysis programs can be in- 
voked In the engineering 
analysis module, while the 
draughting software can for, 
example, take the solid model 
and provide the lines needed 
for a normal two dimers! on ’1 
engineering drawing, removing . 
coincident mi rero l“n.grb lines. : 

Once the product !«■ ^-'rigned. | 
the NC module will define cur- ; 
ter paths, which can he anima- 
ted so that the user can check 
them before running and possi- 
bly prevent machine tool 
damage. More on 01 S36 7717. 




® Far full details phcaie= 

W TbmAlliscaicn09Q4 5365! 
f Stonebow’ Hoase.'^>ricYD12NP 

System for 
dealers 

BASED UPON an enhancement 
of the nominal viewdata soft- 
ware and some purpose-made 
dealer workstations, GEC View- 
data Systems has devised a 
screen-based system for foreign 
exchange dealers. 

The special keyboard and 
screen are the dealer's personal 
exchange rates computer. Apart 
from a numeric keypad, there 
are 25 specific function keys 
and a bank of 20 named 
currency keys — no currency 
codes have to be entered. 

The numeric pad can be used 
as an electronic calculator in 
conjunction with the keyboard's 
thin window display. 

Dealers can call up on the 
screen a page of general 
information showing spot, 
forward and short forward 
rates in 20 other currencies. 

When any rate is changed by 
the organisation, all dependent 
rates are recalculated auto- 
matically and changed — flashing 
signals on screen alert the 
change to anyone using that 
rate at that moment. Trends 
can also be brought up on the 
screen. More on 01-636 8000. 

Speed control 

CONTRA YES INDUSTRIAL 
PRODUCTS in Northampton 
has introduced two Varidyr- 
Motor speed regulators with 
current ranges up to 500 amps. 
The three versions are available 
for speed torque control of DC 
motors. More on 0604 493201. 


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processing (text and data combined) from the man- 
ager's point of view.Demonstrates to the secretary how 
flexible and easy the EXXON 500 is to use. And 
should convince the corporate planner concerned with 
tong-term growth that the EXXON 500 information 
Processorsatisfies all the criteria of functionality required 
to meet his future needs. 

Eveiything is kept in simple, straightforward English. 


We want to make it clear that this is the friendliest 
system developed since VYDEC. the best-selling full- 
screen system (now renamed the EXXON 1800) 
and the most flexible since the easily-upgraded QYX, 
the Intelligent Typewriter (now renamed the 
EXXON 100 senes). 

information processing is the management 
approach of the future - we believe that this book 
makes it dear that the easiest way to implement 
the approach is by the EXXON 500 route. 

When you've read it you’ll be aimed with an the 
right questions (and most of the right answers}. 

You'll then be ready to get maximum profit from a 
seminar - or from a demo in your office. Use the 
coupon to get your source of information right away. 

° ffice 

CAyitl SYSTEMS 

Start with us. Grow with us. 


j □ Please send me the guide “How to develop a 
i successful information system for your business'; 
■ □ I'm already dose to making a purchase 
j decision - please ring me to arrange a demo. 

i Name: 


j Company address:. 


Telephone:, 


No. of office staff employed: 

up to 50 □ upto200Q over 200 Q 

Send to the branch of Exxon Office Systems 
nearest you. They are listed below. 


EXXON OFFICE SYSTEMS (ILK) LIMITED. Birmingham; Raddyffe House 66-QHagiey Ro*L Eflgftaston. Emwighafn 3 6 SRR Tel.: (0Z1) 454-9090 DuWta: Sharptett Ltd. 72. Merrtan Square. Dublin 2. TO.- mn 
Edbibinghi George House. 126-128 George Smw. Edinburgh^* AIL TO: (031) 223-5835 Glasgow* Standard ute Haaa 2 Wei Regent Street. Glasgow G2 faB. is, 
MSJBSl Lo,Klon: ^j 1 a^354s[ r ' TeL: 834-9070 t- 0 ™**! Cfty wan House. 18-22 Fmsiwy Street Lwdwi EC2Y 9AX. Td: (01) 9204511 Manchesten 151 











12 


Financial Times: Tkuisday May 13: 1982 


Accountancy Appointments 


Financial Planning & Analysis 


This is a new position within a substantial 
TXjfh A fpo operating company of a major U.K. group. 
TWU.1 Altd. Emphasis on high standards and 

~~ performance orientation has produced a 
^ rnmnj.ro f demanding environment, giving 
UJ Sa/jUwT uu individuals the opportunity to influence 
business decisions. 


Candidates must be numerate 
graduates or qualified accountants with a 
relevant successful track record gained in 
a sophisticated profit-driven environment 
The desire and ability to influence * 


Generous 

idocation 


A 


Reporting to the Finance Director, the 


are essential personal qi 
age range is 27 to 35. ' 


Preferred 


TbpLevd 

Consultancy 

Financial Management 
and Systems 


A consultancy practice is an elite group of Su cce s s ful yfn 

Jake-minded professionals who enjoy . 

working together: As a career; consultancy — ’ qn^ea accoratents _ 

^stimulating and rewarding. As a career — ambitious and innovative managers 

step, ft provides aimique opportunity for tbe — AP* 4 ***™? a gpod [honours degree 

inrfividrais to -vrork with the senior or an MBAfrom a major business 

manSBMvnf rtf a wMa r a n ge nfkiwnwcsc school 


and reviews the company’s pertormance, . 
reacting quickly to investigate variances 
and presenting findings and resultant 
recommendations at Board level. There 
will be strong involvement with all line 
management areas and in systems 
development A high level of visibility will 
aid further career development 


Please reply In confidencegiving 


P 

■ Peat] 


Arthur Young McClelland Moores & COt 
Management Consultants, 

Rolls House, 7 Rolls BuDdtogs, 

Fetter Lane, London EC4A1 Mi. 


PeatMarwick,Mjtche]i&Ca 

Agd28-35 

Londonbased 


working together: As a career; consultancy 
is stimulating and rewarding. As a career 
step, ft provides auniqueoppartai^for the 
itufividsals to work with tiie senior 
management of a wide range of businesses, 
to add to their knowledge ami to develop 

thpirslfing 

To join nnr Tnanagpmpnf- rrmgnlhrn ry 

-prartke we are JookiQg for additional 
accountants who have professional skills and 
personal qualities of an exceptionally >%b 
order. 

The work is varied and ranges from helping 
to develop business strategies to designing 

and installing financial p lanning ra n h - pf 

systems, for alL types of entexprises in 
Britain and ahrp^ d. 


They will have had at least five years’ post 


Arthur Young McClelland Moores & Co. 

A MEMBER OF AMSA IN EUROPE AND ARTHUR YOUNG INTERNATIONAL 


& ft 


digiriptip eil indos trial or commercial organis- 
ations. fi: will be of particular advantage if 
this experience has fodudecFEhe develop- 
ment of major computer based systems. 

B 

We are loolddg for ontstamfing people and 
our remuneration package— which includes a 
car- is designed accordingly. 

Pleas* send a brief CV to: Coney, 

Executive Selection Division, 

165 Queen Victoria Street, Blackfriars, 
London, EC4V 3PD. 





UK & INTERNATIONAL APPOINTMENTS 


Chartered Accountants 


I ffclTlfiffcn The Management Consultancy Division of Arthur Andersen & 

B-vH IVIU& I Co. wishes to recruit a number of young Chartered Accountants. 

We undertake assignments for a wide range of clients within 
the private and public sectors, specialising in the areas of planning, 
rf, designing and implementing computerised management 

UO lO information systems. 

a We believe that the opportunity will appeal to recently 

qualified Chartered Accountants who themselves wish to specialise 
Xm iTVUUU in this rapidly growing field and who wish, at the same time, to 

* enhance their problem-solving ability and to develop their 

understanding of professional management skids within a 
stimulating environment 

Initial training will be provided through formal training 
courses in London and the USA arid through carefully monitored 
and progressive exposure to the consultancy field. 

Applicants should be graduates of UK universities and be 
under 28 years of age. Starting salaries will be in a range up to 
£14,000 with rapid progression to be expected thereafter. 

For those interested, there is ample opportunity for short-term 
work abroad. 

Please write, or telephone for an 
application form and more detai Is. y\jRTHLJR 

Raul Russell, ANDERSEN 

Arthur Andersen & Co., 1 Surrey Street, . 

London WC2R2PS.Tel: 0J_-836 7200. 


TAX SPECIALIST to £14*000 

Muffinatbna! market leader oBMs sfenutafing career 
opportunity. As 8 ms toe ■boffin" wHhin the head office 
managainsnt team responsibESss range front core- 
pEancs to planning. Accon&n&y, file Ideal candidate 
wffl c ombine technica l Knowledge and quaBIcaflon 
with co m ner cta t awareness. However, po t e n ti al and 
o on wift iwn t an as important as specific isiatad 
expeiisnca RsL 1087A 


TAX PLUS c£11,500 

A substantial UK group offsns a chal- 
lenging roia to ayoungACA.As Deputy 
Group FrianM Conootaryou wS be 
respontibte principal^ lor providing tax 
'advice to mMniee the Group's GabSty: 
You wffl also advfes ovgcoeaa sub- 
sidiaries and be involved in the prepara- 
tion of group accounts. Although not a 
spadafetthasuccassfatcaaftiatewg 
possess a sound badegrotnd in capo- 
rate tax. Ret. 1088A 


WORD WIDE TRAVEL E12K+ Wort/Bens possess e sound badignxnl in coipo- 

Estattish an international earear with this prasfige rate tax. ReLIOBSA 
frame corporation. As a senior member of a highly ' 
professional auefit team, you wBl assume a Ml range 
of rosponsfcattes. with .emphasis on systems 

development Good communfcalion and report writ- Mm Ml ■ 

ing skHs an essenttai tor this management rote. PHM 

European language usafuL SOUTH COAST. ReL iHKbIMHH 
1O80A LEE HOUSE, LONDON WALL, 6CZ 01 


TROUBLESHOOTER cEISK. 

Wepsndant outlook, good con u nere la l Jodgemsm, 
seeking broad hwotvwnent at operating feral? Tha 
post tavotves covering the International operation ot 
fltia European mutfirndtonal, on-site probfem -eote* 
ing at uritsworid-wfde, ensuing lha smooth function* 
Ing of aB financtef control procedures. ACA/ACCA. 
25-30, 2 yeas POE plus European language usefuL 
BA&B) WEST B©. Ret 1090A 

PLANNING POTENTIAL? CE125K+BMW. 
Are you are a quajffisd accountant wHh at least 3 
* years FQ£.wfth a somd knowledge of accoutring 
controls, standards and tax? U tfisa this experience in 
a sophisticated pfenning function, and assist top 
mansgememteopfimjsedieirpedQinianoeaviidBn* 
% areas tor future growth. Career prospects are 
axce fl e n t wtthft Ws major company. - &RMNG- 
6066771 HAM.ftst1025A. 


ROBERT HALF 


ACCOUNTING, FINANCIAL AND BANKING ffH RECRUmVIENT & SEARCH CONSULTANTS 


APPOINTMENTS 



RC.M.A. 

Extensive experience, in senior 
finance role in successful major 
U.K. group. Available for 
assignments (U.K. or overseas) 
or in financial advisory capacity. 
Fee discussed prior to assign- 
ment. 

0793 723247 


£@®J\ 

*'Our work is chiefs play" 

FINANCIAL CONTROLLER 

Rsher-Price Toys Lfd’sxoaiket-place reputation for its range of high-quality dur- 
able toys is matched by real growth, sound financial ratios and effective business 
control. Thepostof Controllerreports to theMacagiDg Director ac d has a comm er- 
rialrather thanmanufacturingflavour. The Company is primarily marketing, sales 
and distribution orientated and the Controller will be responsible for accounting, 
data processing and credit control together with financial planning. 

We seek a male or female C.A. or finandalBusmess Graduate with afi-ronnd skills, 
dynamism, and proven flair for taking the best business view. Practical abilities will 
need to be applied to themanagementofasmall department, SD.P. applications, die 
identification and interpretation of business trends, cash flow management, tax- 
ation and the international movement of funds. The management team is young 
and candidates should be in their early thirties. Salary is negotiable and well into 
fivefigures, togetherwith excellent employment conditionsandbenefits, including 
a car. Assistance with relocation to Northampton is available. 

AMerspaaficationwiDbeseiitto those chosenforinterview.PIeaseteleplionefor 
an apphcationfbrm, or write briefly and in confidence to: 

Iain Reid 


PERSONNEL 

SELECTION 


Personnel Selection limited, 46 Drury Lane, Solihull, West Midlands B91 3BJ 
Telephone: 021-705 7399 or 021-704 2851 


delivers 
the future 


'iliiUliD; 


Intel is the leading company in the micro- 
electronics industry and has recently established a 
division in Swindon from where ft is expanding its 
European activities. 

We are nowlooking foran experienced Auditor, 
of at least 3 years’ standing, to carry out our financial 
and operational audits in Europe. This necessitates 
a large amount of travelling for which a knowledge 
of French and German would be an advantage. An 
approprfatequalificatfonortheabilrtyto demonstrate 
equivalent understanding is essential white computer 
audit experience would be beneficial. 

Conditions of service match the excellence of 
our staff and products. Benefits include good pros- 
pecteofadvancement,acornpetitrvesaJary f paldhoIi- 
days, generous relocation package, pensionscheme, 
BUPA membership and life and disability insurance 
while bang based in a- delightful part of the country 
within easy accessofLondon,theSouthWestand the 
Midlands. 

Please send a fufl GV to the Personnel Depart- 
ment, Intel International, Pipers Way, Swindon. 
Wiltshire SN31RJ 




These vacancies 3fs — 
open to mal a and 
fenial aa p pBc an te. 


An expanding international group of companies, now wish to make the following 
key appointments for two of their U.K. subsidiaries based in Middlesex. The 
companies are successful manufacturers and contractors for the bunding and 
engineering industries. __ _ 


Commercial 
Financial Director 

c. £13,000 + Profit Share + Car 
A qualified accountant or MBA, aged 30-40, 
who, as well as being responsible for efficient 
-financial and management reporting is required 
to become totally involved in the commercial 
activities of the company. Reporting to the 
MJ3., toe appointee will have the maturity 
aid experience to negotiate contracts, make 
decisions and control a multi-disciplined 
team of professionals. 

Ref: A422 


Management Accountant 

to £12,000 + Bonus + Car 
Reporting to the Major Project Director, a 
qualified accountant, preferably ACMA, 

27 - 35, who is experienced in costing and 
management accounting within a manufactur- 
ing/contracting environment is required to 
design and install the administration and 
reporting systems with an emphasis on 
computer applications. This broadly based 
role will encompass planning, budgeting, 
monthly management reporting, financial 
investigations and office administration. 

Ref; A423 


Contact: M. Bond, ACIS^ at work (or after hours on 037 22 74445), quoting the relevant 
reference number. 

Management Personnel 

Recruitment Selection & Advertising Consultants 

2 Eton Court Eton Windsor Series 

WINDSOR (075 35354256 


CONSTRUCTION COMPANY 

FINANCIAL CONTROLLER/COMPANY SECRETARY 

Application* era invttad tram Qualified Chartered Accountants or 
Company Sacretories to direct end supervise our financial end account- 
ing act (Wires. Tire successful applicant, who will be in (he 35 to <5 
aga range, will be reporting directly to the Board, should be energetic, 
self -motivating and most probably nave had experience in the construc- 
tion Industry. He or she should be fully conversant with D repartition of 
finsnciaJ Management Information, cash flow and budgetary control 
techniques end would have to take responsibility for comp uteri sine the 
accounting activities of the Company. 

Please write with lull career detail*, 
marked strictly private end conHdentiaf. to: 

Managing Director, 

WILLIAM NICHOLSON & SON (LEEDS) LTD., 

PO Box TO, Sbeef Street. Leeds LSI 1PQ. 


Investment Executives 

West Midlands Enterprise Board 

These newappointments are to spearhead the investment 
activities of the West Midlands Enterprise Board limitedvThe 
Board’s aim will be to stimulate industrial growth in the region; 
the main thrust will be to assist in strengthening medium and .. 
large companies by the provision of venture capital. ' 

The Investment Executives will be responsible directly to the 
Chief Executive. Principal tasks will include the identification 
and appraisal of investment opportunities; control and 
implementation of investment plans; and monitoring of 
investment and corporate performance. . 

Candidates, qualified accountants or business graduates, will 
have had relevant senior level experience in industry or 
commerce. Investment analysis skills linked to the ability to 
assess longer term prospects of corporate viability will be needed. 

Starting salary in the range £12,000 to £18,000. Relocation help if 
required. 

Please write-in confidence- with full career details to E. I. Clark 
ref. B.7-5234. 

TheseappcatmommcpeHtomenamltrmmn. 

United Kingdom Australasia Benelux 
Canada France Germany Ireland 
Italy Scandinavia South Africa 
Switzerland U.SA. 

Management Selection Limited 

Internationa! Management Consultants 

Union Chambers 63 Temple Row Birmingham B2 5 NS 


Financial 

Director 

Swansea 

Neg from £141)00 + profitsihare + car 


S&mna (Wales) Limited is a leacfing 
laefieswear supplier to Maries &Spencet 
predating a wide range of casual and 


twstoess centres, two in South ^ Wales and 
two in the Worth Mi dlands. 



YOUNG DYNAMIC ACCOUNTANT 

Expanding North London transport and distribution company 
require a part or recently qualified person with a history of 
success for all accounts functions. 

Excellent salary offered, company car and other benefits. Hart 
working, ambitious and loyal applicants should ’phone and 
arrange an interview with the Managing Director of 


SQUARE MOVES LTD. 


01-625 5151 


sig nifi cantly increased over the past fire 
years ami we are now preparing our 
nsaoagement team for further expansion 
from our present £36 nuDion turnowee 

AleyiespqpsM^^rliortiteaew'F inandal 
Director win be tbe devetopmeutof 
Corpora te Strategy coupled with the 
Provision of strong financial (fetijlmes. 


and for the interfacewth the parent ; 
Ibatal Group. 

In this context, tills appointment 
represesitsasubstaatialopportLHdty 
foranexperienced Chartocd Accountant 
tongteamajorcontribottoptolfae 
compaqyb dynamic growtiLAged30 to4^ 
yon atoouidtowe had aprofessioaal 
badt&roundfblkmedty 
co mro er aa leipCTieDmatasemcMrlevti, - 
organising and developing the total 
financial Srocfionofatiu^ess-Drioe, 
initiative azxJcommertialacumeB are ■ 
key personal attraaitesJlease write witii 
compre&sisSrecxfK 


TTrt Managing Director; . 
-Sfimma (JffiUa) limited, 
13/MWoodstock Street, 
LozktaaWL " 


VV 












?ia,. 


Financial Tunes Thursday May IS 19S2 




Accountancy Appointments 




ACCOUNTANCY APPOINTMENTS 
ARE CONTINUED ON FOLLOWING 
PAGE 


cmdSyst&m 

LkprUKplc 

A&26-32 

c£H0CX) 


Taw n*trwt3re oppc-rtnniLy !«.?*? at the corporate 
rims ut u::e iif tin: L'iC.-s fi-t'cmosc public 
and uti’ci': a UiULtx- tu Haiti M*|ilii:.ticaicd 
.tin! cuiMjmivr rx; in a very 

ii'Yi -1 su :uiii rapidly < triiruii.at ion. 

hc ; :^r..-ihuinc.-: include s3Y.K’/!i’ idM.s Hie 
T.r:’jr.j:v.i...ria;:«l .iii.siy >»•.*■! tiwgriyiiji’h ni.iu:i;.;ente'nt 
a.o»:u::?- f J < i.-utiti. l\:n l il* jv,* tumitunis 

a:.’; ..-! :;>n/pr--. i' :l.-. 'Hi*.* will be 

: u-*p'..::v.ib:>. 5 >v *iu: miniai:*: rai :»*:i • <i t Ini 
u?r'.y.“.:i.L :i lS in.:: ajul some 

c- jH.-L'i.i'.ud siui: .> del 

U'j'fi-'-.i'.ts Jioiild be ijiialiiirti aicr.unttintjs with 

;rv -qh! skill <«i.< Idyll «»i <.!■■:' exjvriuucfi 

. '.rrijii.ii ■!i.-««lf->hLun- f h in:« 'i^iiua'intlie 
pr'>3’'->?:-'rioriui-‘i'iinic:\:i: iiuIum: y. 

S'hu’ic rite j*r ^ i . •/. j cure I’.W >5.7*, 
O. . . hilfi/. -*»"<* i.' ii t'B \ l ‘ii'i.fi iril a.1, JJuid:Ji hi).', 

*-•. I.' l'l 1 /.', .LiLriV ilPLi. 


I Peal, Mar* jck. Mite hell &Ca 
i:\iV2iru wSl/iv 7/u;z / .Vn\7. j/? 


Analytical ICMA’s 

Develop your career via 

International 
Operational Audit 


UK Based 


to £12,000 


Our client, a two billion dollar US multi-national group, seeks to recruit 
two qualified lCMA's to augment their existing operational audit 
function. 

Responsibility is to the Audit Manager for operational audits of 
marketing, personnel, production control, acquisitions and treasury 
functions, systems audits using in-house devised audit packages, and 
limited review audits. Operating from your home you will spend 
approximately id** of the year in the UK with the remainder in Western 
Europe, South Africa and Australasia. 

Promotional opportunities arc excellent as the organisation pursues an 
aggressive career progression plan. 

Applications are invited from newly or recently qualified ICMA’s ■with 
cither marketing or engineering biased degree or experience gained 
within a mimutacturing environment. Self-motivation, social awareness 
and the ability to succeed are the essential qualiu'es required in this 
demanding but fulfilling role. 

To apply please telephone or write in confidence toM. J. R. Chapman 
quoting ref. 6007. 




liqyd Chapman 
Associates 

123, New Bond Street, LondonWIYOHR 01-499 776! 


treasury Accountant 

Bracknell Salary c.£U,000+BMW Lease Car 


BMW (GB) Limited is the wholly owned 
subsidiary of BMW AG Munich and we 
control the distribution of our prestigious 
range of BMW cars, motorcycles, marine 
engines and parts throughout the UK. 

We are currently seeing a Treasury 
Accountant who will be responsibletothe 
Chief Accounts nt for all aspects of the 
Company’s affairs relating to cash 
management and foreign exchange 
transactions. It is envisaged that other 
responsibilities e.g. lease management will be 
undertaken by the Treasury Accountant in 
due course. 

The successful candidate will:— 


★ probably be between 25-30 years old 

★ have 2-3 years’ experience in an 
accounting or treasury function 

★ be an excellent communicator at all levels 

★ be prepared to give occasional assistance- 
in general accounts work. 

In addition to an attractive salary and 
lease car, our benefits include PPP, pension 
scheme and generous holidays. 

If you have the ability to succeed in this 
key position, please write with full personal 
and career details or telephone for an appli- 
cation form to:— Maureen Calvert, BMW 
(GB) Limited, Ellesfieid Avenue, Bracknell, 
Berkshire RG12 4TA. Tel: (0344) 8026£ 


BMW (GB) LIMITED ^ 



International Bank 

A New Opportunity 




You will have several years' general 
decollating experience, probably gamed 
to some extent in banking. Perhaps P°*’ 
aualified and aged ideally 24—30 years, 
you will olso have a sound knowledge at 
computerised accounting applications. 

As Accounting Supervisor of a major 
International Bank in the City, you will be 
expected to become io tally involved in ail 
functions earned out by the Centrcl 
Accounts Department. This will include 
compiling monthly management/ 
accounting information, customer audits 
aad taxation or legal requirements. 


Supervising a small team, you must 
therefore be self-motivated, courteous 
and adaptable with a calm, conscientious 
manner. Youi ability to cope with and 
coordinate change through growth and 
development, is vitaL 

Benelils include a salary c. £10,000 + 
Bonus, Pension/Life Assurance, 
mortgage subsidy, loan facilities, L.V. s. 
To apply for this new appointment, please 
ling or preferably write to Richard J Sowerby, 
as the Company's adviser, at Crippfl, Sears 
& Associates (Personnel Consultants), 
88/89 High Holbom, London WC1 V 6LH. 
Telephone: 01-404 5701 (24 hours). 



Cripps, Sears 


ACCOUNTANCY APPOINTMENTS 
APPEAR EVERY THURSDAY 
Rate £29.00 per Single Column Centimetre 


FULLY 

QUALIFIED 

ACCOUNTANT 

required by company established 
for more than 100 years success- 
fully exporting millions of 
pounds of equipment through 
its offices In many parts of 
Latin America and Western 
Europe, to take over the running 
of the book keeping within the 
UK. The bookkeeping in the 
foreign branches is handled on 
a day-to-day basil in the 
countries concerned. Basie 
starting salary? £10.000 per 
annum. The company supplies 
other emoluments such as 
luncheon vouchers at 75p per 
day, bonuses and season ticket 
loan,, ece. 

Reply with e.v. tor 
Box A.78S3. Financial Times 
10 Cannon Street 
London EC4P 4BY 


Catwr 


A major UK public group Trith fifrersa commercial [merest? , ssdwith 
fiirihcrplans for exprinrion, wishes to appoint two n inline d ace-umuii 3 to 
Senior positions v.iinin the organisation. 

1 .) Ti!>* new position at group headquarters entail? l!se coortTmahono: 
the production r.L ail management inf ’Huali'*! 1 . and 
accounting for the large** t dhisioii. iuv divi?ionai matvseijii.-!!" and 
file main group board. Kesponsibilitios aviil ajs*' 1 oi'-X: v; :k ty vz. 


jbrQualified 


London 

c£BpOO+car • 


Jiei* LTjh.-uVL. 

2) The second position fa tint of Huimetil Controller of a major 
sub-group v. ilh a current tumuver of ci’Tum. T he 
candidate, either Chartered or Certified, ivili have res?' 'liabilities 
for llie impknu-TiLaiii >u o;n new group conii<uti-r ba^L-ti uccuuntiag 
xicdnuinagenient control system and su?j:-cquei:i!:'v.'r the 
monitoring i if! he accomibug offive regi. ip.al operalib?; dsvi.-io:^. He 
or she -.rili be reeponsililefor ensuring :Sie in'O'iu, i ion | •! yrucp 

consolidated accounting reports and be involved in ••««! iv -e pr- cts 
at both the sub-group and operating division !e tel. liei: 1> of l .“.\ L. 
Salaries are negoliablv, and benefits :-:-r both posiL-jiis include a h.'.'.y 
ejmensed cai*, non-contributovy pensiou and health SLheuies . I'i'e? i • -ula n 
this ambiu’i.'Ui group are first-rate. 

Phase :ni.‘c in ojr.jhUi'M', tyuAwi; the tvlcrniri i\jji , ,:.v •: : yr, io 
X. Halsey, ltj5 Q:mis yh'LtnaSthxt, iiCi 5 .’ jPlf. 


Hoggett Bowers 

Executive Selection Consultants 

BIRMINGHAM. CARDIFF. GLASGOW. LEEDS. LO.SDO.S.MA SCHES TER. ,V£IVC1S TLE aid SHEFFIELD 

Project Financial 
Controller 

Engineering contracting 
North East England 

Our client is part of a major British group and has expanding international 
interests in engineering contracting and large scale project management 
Responsibility in this new position is for the overall financial control of a large 
overseas project with emphasis on management reporting and dose 
involvement in the commercial aspects. The essential requirement is fora 
management accountant with senior level experience in contracting or capital 
plant manufacturing. Candidates 30-40 should be qualified but older 
candidates with relevant practical experience will be considered. Salary Is for 
discussion and the comprehensive benefits include relocation. Development 
prospects could be significant in this growth environment. 


G.X, Walker, Bef: 42397/FT. Male or female candidates should telephone in 
confidence for a Personal History Form 0632-327455, 4 Mosley Street. 
NEWCASTLE-UPON-TYNE, NE1 IDE. 


Peat, Marwick, Mitchell &Co. 

Executii *e Selection Division 


Young 

Accountants 

W London 
£12^00/05,000 

A successful UK industrial group with extensive 
international interests seeks two qualified account- 
ants for its Controller's slalf. The senior pusL heads 
a small team producing financial reports for board 
and senior management using advanced EDP 
support The second covers accounting research, 
assisting in the formulation and implementation of 
policy on all accounting topics, including differ- 
ences in international accounting practice and 
standards. 

Both jobs offer exceptional technical experi- 
ence and a stepping stone to wider development 
Applicants are likely to be 27*30 for the senior job, 
with experience in a major international practice 
(or company) including complex consolidations 
and EDP use.The ‘•research'’ post indicates some- 
one 24-27 who has been exposed to current ‘best 
practice’ (UK and US) in the profession (or 
industry). 

For full job description write in confidence to 
John Courtis at 78 Wigmore Street, London W1H 
9DQ, showing clearly how vou meet our client's 
requirements, quoting 7100/FT. 

Both men and women may apply. 

John Courtis 
•...and Partners...*' 


Financial Director Designate 


Circa £20,000 

South-East 

Scotland 


This is a new appointment In a rapidly 
developing off-shore engineering group which 
has strategically located bases providing a 
comprehensive service to the oil industry. 
Turnover Is now around £10 million and further 
growth is planned. 

Responsibility will be for ail aspects of the 
financial direction and control of the group, 
including a broad involvement in commercial 
and funding matters. 

The requirement is for a qualified accountant, 
C.A., or A.C.M.A., with sound financial 
management experience at or near board level in 
a fast moving engineering environment 

Salary is negotiable to around £20,000 plus 
car and other benefits. Age: 35-46. 

Please write in complete confidence to 
Peter Craigie as adviser to the Group. 

Arthur Young McClelland Moores &Co* 
Management Consultants. 

17 Abercromby Place, 

Edinburgh EH3 6LT. 


A 17 Abercromby Place, 

Edinbuigh EH3 BLT. 

Arthur Young McClelland Moores & Co. 


A MEMBER OF AMSA IN EUROPE AND ARTHUR YOUNG INTERNATIONAL 


MERCHANT BANKING 

doling Chartered Accountant 

Hill Samuel & Co. Limited, a part of the Hill Samuel Group, is one of the City's principal 
Accepting Houses with subsidiaries in Australis, the Channel Islands, Hong Kong, Ireland, 
South Africa, Switzerland and the US, A. 

Wc require a recently qualified accou nta n fc for the GroupTnternal AuditD epartment, which 
covers all the merchant bank worldwide and apart of the Group’s investment management and 
insurance businegs.The selected candidate should becapableofmakingan early contribution to 
the quality and effectiveness of our financial control systems .and should also possess the 
potential far further career development in merchant banking activities or elsewhere in the 
Group. He/she will preferably have worked for a reasonable period -with one of the larger 
international firms of Chartered Accountants. 

This is an excellent opportunity .to gain an immediate insight into a forward-looking 
organisation which is extending its range of services and developing a new generation of 
sophisticated business systems. It also provides reasonable periods of stimulating overseas 
travel. 

The salary we expect to pay will reflect the importance and scope of this appointment and 
outstanding company benefits Include subsidised mortgage and loan facilities, non- 
contributory pension scheme, free life assurance and BUPA membership. 

Candidates should apply in writing with details of their personal history, qualifications and 
experience tos- 

Wiss Deborah Harman, Senior Personnel Office? 

HCI Samuel St Co. Limited. 100 Wood Street, London.EC2P2Ai 

HILL SAMUEL & CO LIMITED 


An opportunity to become 

FINANCE DIRECTOR 

within 12 months 

are acting for a well-established, British print group 
which has a large client portfolio including many “blue 
chip” companies. It is profitable and is embarking upon 
a carefully planned expansion programme with the 
intention of doubling its turnover within a short tpace 
of time. 

Initially as the Chief Accountant, you will be responsible 
to the Chairman for the entire accounting function. In 
due course, you will direct the acquisition and 
development of a computerised operation. So, experi- 
ence of an integrated financial and operational reporting 
system is essential. 

Vou will play n major part in the future expansion and 
must, therefore, have the business brain and personal 
qualities to grow with the company. Vou will also be in 
charge of administration and will assume the role of 
Company Secretary. You should be ready to accept a 
Board appointment within 12 months. 

This is an opportunity not to be missed for a young, 
qualified Accountant with plenty of drive and enthu- 
siasm who is looking for a worthwhile business career. 
Suggested age around 30. Commencing salary c. £12,500 
plus bonus and a quality car. Location S\V London. 

Please vmte in strict confidence , enclosing c.r., quoting ref. 
211 toD.B. Atkins 

\ Recruitment Consultants 

iAiVXVl 15 Borough High Street 
i London SE19SH 

selection Tel: 01-403 0924 


FLEXON HOLDINGS LTD. 

Require a 

GROUP FINANCIAL DIRECTOR 

designate A.C.A. 
c £20,000 + usual benefits 

The company Is parr of a newly formed international group 
engaged in the manufacture and distribution of chain and trans- 
mission products, Applicants should be over 30 and have suitable 
experience and a proven record of achievement either in industry 
or the profession. The ability to speak German and Fcench would 
be an advantage. ' 

The successful applicant will report directly to the parent com- 
pany board and will be responsible for group financial planning 
and control. He/she will be based in Letchworth, Herts and will 
be part of a small headquarters team. He/she will be required to 
travel regularly both In Europe and the UK. 

Reply in the n rst instance to; 

R. I. Templeton, Esq, FCA 
MESSRS. ELLIOTT, TEMPLETON SAN KEY & CO. 

Peter House, St Peter’s Square, Manchester M I 5BH 
Tel: 061-228 6791 





Financial Times.- Thursday. May .13. 1?82 : - 




Oil Industry 
London 
c£13P00 


A 


This major British oil company is enjoying 
excellent results from its exploration, 
production, refining, shipping and 
marketing activities throughout the world. 

The brief of the Assistant Company 
Secretary will be broad including most of 
the responsibilities associated with this 
position in an international group, such as 
maintenance of statutory records, control 
of the Transfer Office, filing of returns and 
attendance at meetings. This position 
would ideally suit a mature candidate and 
also offers further opportunity within the 
parent company. 

Candidates must hold either an 
accountancy or secretarial qualification. 


They should demonstrate through their 
career a strong secretarial background 
preferably in a large company. Personal 
attributes must include efficiency and 
accuracy coupled with the thoroughness 
demanded by the position. Previous oil 
induslry experience is not essential. 

Please reply in confidence giving 
concise career and personal details and 
quoting Ref. ER539/FTto J.J. Cutmore, 
Executive Selection. 

Arthur Young McClelland Moores & Co., 
Management Consultants, 

Rolls House, 7 Rolls Buildings, 

Fetter Lane, London EC4A1NH. 


Arthur Young McClelland Moores & Co. 

A MEMBER OF AMSA IN EUROPE AND ARTHUR YOUNG INTERNATIONAL 


Accountant 

£14,000 p.a. (neg.) . Car ? South Coast 

A newly created senior appointment with an important subsidiary 
of a profitable, international Electronics corporation. Reporting 
to the Director of Finance, the successful-man or woman will be 
ambitious for promotion beyond the scope of this -position and in 
.addition to possessing recognised Accountancy qualifications, 
will be: 

* 30-45, experienced m .manufacturing and able to control a 
wide range of financial tasks, preparation, monitoring and 
creative reporting on budgets and forecasts,' 

* commercially aware, able to contribute to Business Plans 
and strategies — and to computerised systems changes 
and applications, 

* an effective communicator, working closely with colleagues, 
able to achieve objectives with only policy direction. 

Top level executive benefits, generous relocation expenses and 
an attractive working environment. Replies in strictest 
confidence, reference WM/83. 


I 


Michael Quest 

Ass o cia te s 

Executive Selection Consultants 
u S96 Chiswick High Road, London W45RS. 
I 1 Tel'- OV895-3240/7 „ 





GROUP FINANCE DIRECTOR 


Manchester To £25,000 + car 

Our client is a UJC public group whose U.S. associate is financing 
significan t expansion and development following a major reconstruction. 
Consequently, they seek a qualified accountant whose commercial outlook 
and technical experience will ensure their significant involvement in the 
wider aspects of me business. This is a challenging position which demands 
a breadth of experience. This will include international involvement,- • 


up to 45 years with emphasis being put on personality, business awareness 
and track-record 

The remuneration package is attractive including a future possible equity 
stake. _ _ 


Applicants should send Rill career details (quoting ref 825) to Nigel 
Hopkins F.C. A. Michael Page Partnerships Faulkner House,. Faulkner 


Hopkins F.C. A. Michael Ps 
Street, Manchester Ml 4DY. 




— 



V,7- ■ 




Michael Rage Partnership 

Recruitment Consultants 

London Birmingham Manchester 


1 ■ ;-.t v f. - , V 1 •' •- r ? 1 ' 

* - ' ' CC SOFT DRINKS '' .SUNBU^ONT.HAiviEfe 

FINANCIAL CONTROLLER . 


Hoggett Bowers 

Executive Selection Consultants 

BIRMINGHAM, CARDIFF. GLASGOW. LEEDS, LONDON, MANCHESTER. NEWCASTLE and SHEFFIELD 

Chief Accountant 

- _ .South Herts/N.W. London, 

c.£15,000 ± excellent fringe benefits 

This position is with the UK subsidiaiy of a major British based European 
group in the computer service industry. The company isthe market leader in its 
field with an annual t/o iii the region of £4m. Reporting to the Managing 
Director the person appointed, wjllhave full responsibility for managing the 
financial aspects oE the company's operation with particular emphasis on the 
! i melv provision- and interpretation of managemen t information. Applicants, 
ideally in their late 20 s or early 30 s must be professionally qualified and have 
previous experience at supervisory or managerial level There is a most 
attractive range of fringe benefits and career prospects are extremely- good. 


E. Sutton. Re/: 17206/FT. Male or female candidates should telephone in 
confidence for a Personal History Form 01-734 6852, Sutherland House, 
5/6Arg\'ll Street, LONDON, WlE 6EZ. 


« v* * ■ - r 


CCSoft Drinks is the 
rapidly developing soft drink producer 

(fourth largest in the UK) of the Grand Metropolitan . ~ - 

Group of Companies. Its main products are Coca-Cola, Fanta and allied brands in the 
Southern part of England, and a complete range of Club products for the' licenced trade 
nationally. It is currently developing, exciting new products ranges and aggressively 
pursuing volume and profit growth while maintaining rigorous controls on cost 

This appointment recognises the need to maintain and develop financial control and 
management information systems, ft is a career position which could leacHo promotion, - 
either wifoin the Company, foe GM Brewing & Retail Division, or.in other parts of GM. - 
We are seeking a mature arid experienced individual, who will pratabiy have had - - • 
recent experience of managing Financial Planning & Analysis and the other functions 
normally associated with such a role. He/She will be aged around 28— 40; a qualified 
accountant, likely to be earning In excess of £15,000 per ahnum.The benefits package 
offered is excellent including a Company Car, BUPA, and a Company Pension and Life 
Assurance Scheme. 

Please send detailed CV to Mr K J Milner 
Financial Director CC Soft Drinks 
jBjjtesl W fl Club House Hanworth Road 

Sunbury an Thames Middx TW165DF 
Tej: Sunburv 35555 


":J It’s the real thirig 




ACCOUNTANTS 


An - international -company 
requires qualified Accoun- 
tants for Die . following 
vacancies:— 

a ) based in Jeddah, a back- 
ground in retail trading is 
required. Sarary up to 
£17,500 tax free:, plus 
benefits, 

b) Monte Carlo based, ship- 
ping experience desirable. 
Salary c. £13.500 tax free 
plus benefits. 


Flense send c.o. to: 


IMS Ltd. 

121 High Street, 
Oxford 0X1 4DD 


Director 




£20,200- £21,550 
plus car allowance 

Applications are invited for the above post tofowsig Gren 
Ftjbuefs^povitmm as City Treasurer to Sheffield. The 
successtul candidate will be responsibteforpfovkfng a wide 
range of financial and data processing services, and wiB be 
expected to mate a major corrtitjution to devebplhe Council's 
long term strategies and corporate procssses-Tbe Count* has 
developed advanced systems to plan and control its services and 
to increase efficiency and effectiveness whereverposslbte. 

Appfcants should be membare of CIPFA with a proven 
career reaxdri local govemmert finance and possess the ... 
management expertise and abStyto motivate a Dinectorateof. ' . 
8Qm*250 staff. Experience in the development of computerised 
managament Woimation systems would be an advantage. 

Relocation expenses and dherbeneBs form part: oi foe 


For an appfieafionfomi and fortrierdetafe contact . 
Director of Manpower Sendees, Bexley Chnc Offices, 
Broad way B exieyhaalh, Kent DA67LB. Telephone: 

01-303 7777 Ext 236A For an informal dtecusskm contact 
Gren Fohwefl, ExLAOO. Closing date for applications: 

1st June, 1982. 


Bexley 


Financial 

Controller 


Our client is a significant international 
group operating in the mechanical engineer- 
ing industry. Their muto'-miifton pound 
turnover, export orientated, UK subsidiaiy 
has recently been reorganised creating this 
important new post 

The Controller will run a small 
department and report directly to the local 
Managing Director with a functional responsi- 
bility to the Group Financial Director 
Candidates should be qualified 
accountants with a broadly based back- 
ground in manufacturing industry They must 
have the experience to handle a major 
restructuring and computerisation of financial 
systems and to operate in an international 
environment They should have the potential 
for promotion to senior roles in the group. 

Aged 35-40, salary .£ 15-17,000 plus 
cat; location North East England. 

Please reply in complete confidence 
quoting reference 131 6 to David Thompson, 
who is advising on disappointment. 



ers 


MANACraflENTOONSOnStjriS 
Odgerz end CoI-JtL One OldBondS:, 
JjOtuIokW]X 3TD 
MMSB 


MMCE MANAGER 


EUROPE 


Camberiey 

Surrey 


circa £14,000 
plus car 


Our American clients have developed a highly 
successful international business in the 
computing field and are now looking for a 
qualified Accountant in the age range 25/35 
who will be responsible for their European 
financial and accounting control; - - 

Applicants who believe their experience and 
career to date would fit them for this onerous 
and responsible post should send curriculum 
vitae to the company's aditors 

Roberts McLennan & Co. 

6S Chertsey Road 
Woking, Surrey 

who are instructed to interview and shortlist 
candidates. . • - 


CHIEF ACXXXJNTANT 

c£18£00 

Godfrey Davis Europcar, Biitain's leading car rental 
company and part of the worldwide Europcar organis- 
ation, require a Chief Accountant to lake complete 
responsibility for a large structured Accounting and 
Finance Department, based at the UK Headquarters in 
Bushey, Herts. 

The successful applicant will report to the Finance 
Director, and have a close working relationship, and 
involvement with the Managing Director and other board 
members - being very much part of the senior manage- 
ment team. Applicants should be ACA/ACCA qualified, 
and preferably 30/45 years of age, with technical financial 
capabilities and have the ability to respond to strict dead- 
lines, combined wifh previous experience in motivating a 
large staff in a similar capacity. Accounting systems are 
heavily computerised. 

This challenging position in a company with over 260 
locations in the UK alone, involves a close interface with 
the international network and offers excellent opport- 
unities for further career advancement. Benefits include 
company car, non-contributory pension scheme and life 
assurance cover. 

Applications to: Mr. W. R. Sheppard, Finance Director, 
Godfrey Davis Europcar Ltd., Bushey House, High Street, 
Bushey, Watford, Herts. : - * 


1 1 God f rep 


Qavis 


eu 



NO INTERVIEWS NO JOB! 


If you don't get an interview you can't get the job So your CV 
is all Important. It must Inform and impress a potential employer 
with its objectivity, lucidity, lay-out and relevance. To get that 
vital interview ix must be professionally written and presented, 
otherwise you may fall at the tint hurdle 

Curricula Vitae are the professional land original) producers of 
GV’s, with testimonials from many satisfied clients Our services 
include CV writing, personality profiles, interview training and 
counselling. Writs or phone now for details ... 

Curricula Vitae Production Ltd Dept FT 610 rvv 
35 Soho Square London W 1 V SDJ 01-439 1391 



ACCOUNTANCY APPOINTMENTS 
APPEAR EVERY THURSDAY 

RATE £29.00 

Per single column: centimetre 


CHIEF DIVISIONAL ACCOUNTANT 

MILTON KEYNES c. £12,500 PLUS CAR 

Qualified Accountant aged about 30 with proven track record, 
required for rental division of successful, progressive private 
group of companies in .transport industry. 

Successful applicant will report to Divisional KD and possess 
the ability to work with and directly contribute towards an 
aggressive and forward thinking management team in a profit 
conscious environment 

Please write toiOi lull c.v, to Clive Gear F.C. A., 

Group Accountant, Xteraon Group Limited, 

309-115 WaUttMLSjiggfc BtMbhr Itfflfrm Keynes MK1 ZDB 








rice 



oath of England 

•ye? 


C.E2M 


A publicly quoted group requires a top calibre accountant asT*i nanca 
Directoc The group has an impressive growth record and current 
turnover from products sold into both wholesale and retail markers is 
approaching £20 million. This appointment a rises from leargamsa- 
rion and carries responsibility for the wed group fin a n ce f unctio n, 
with emphasis on hig hly effective financial control of the operating 
divisions. There is a strong possibility of wider r ft^on sibi tafisiii the 
nearfuture. 

The successful candidate will have the following characteristics? 

* Hold a recognised accounting qualification. . 

. * Age 35 to 45. . 

* At least 10 years’ industrial experience, preferably moon- 

ing several years in a manufacturing company with flow 
line production processes. _ 

* Have held a position at. Finance Director or Gsatrouer 
level in a substantial company with sound financial con- 
trol based on computerised information systems, 

. Good commercial acumen. 

' * A strong but diplomatic personality. - 
Pleaseapply with full c.v. to the Confidential Reply Service, Ret ABF 
350, Austin knight Limited, dda High Street, Egham, Suras 
TW209EY. 

Applications are forwarded to the Consultant who is advising the 
Group on this appointment, therefore, companies in which y ou a rc 
not interested shouldbe listed in a covering letter to the Co nfi d en tial’ 
Reply Supervisor; .. 


r ± r i L^i ! 


AK 




PROJECT MANAGER FINANCE 

£13,500 + CAR 

A qualified accountant.- is -required to assist in. the development and 
financial control of special projects and acquisitions for a West 
Midlands based group of companies. 

The person concerned must have at least 3 years' post qualification 
experience with a medium-large firm of accountants. Exposure to 
and an understanding of the detailed reporting requirements and 
financial controls of large industrial concerns, together with 
knowledge of the operation and development of computer based 
financial and business systems, will be an advantage. 


L. 1. Jebscn, Esq. 

Finance Director 

CENTREWAY INDUSTRIES PLC 
1 Waterloo Street, Birmingham U2 SPG 


0 


AH^mcmilMES SURVEY 

Y 


THURSDAY 17 JUNE 1982 

The Financial Times is planning to publish a 
Survey on Accountancy on the above date. The 
provisional editorial synopsis 1 is set out below. 

1. Introduction 

The accountancy profession is suffering from the 
recession, but it has shown itself to be resourceful and 
. adaptable. An overview of the profession and its 
place in the economy. 

2. Accountancy Standards 

' Attempts are being made to restore the momentum 
of the standard-sotting process, and to secure the 
position of the profession within a framework of 
self-regulation. 

3. Accountancy Bodies 

In the past Uie various accountancy bodies have 
jealously preserved their independence, but now 
mergers are on the horizon. ■ 

4. The Big Firms 

Increasing competition among the big firms, 
aggravated by the recession, has led to problems over 
the strict professional rules on publicity, and several 
firms have been rebuked by the head of the Govern- 
ment Accountancy Semce for their promotional 
. activities. 

5. Current Cost Accounting 

Compliance with SSAP 16 is being closely monitored 
and the standard is due to he reviewed after three 
r - years. In the meantime there are proposals to require 
companies to put their past sales and profit figures on 
to a “ delisted ” basfa. 

6. The Public Sector 

The debote continues over the role of the National 
Audit Office. Elsewhere the scope for private firms 
to audit local authority accounts has increased. 

7. Small Firms 

While mergers have been common at the top end of 
. the profession, at the other end thousands of 
independent small firms contiue to practise. The 
effect of the political measures to boost smaller 
businesses. 

8. Finance Directors 

Accountants have traditionally played an important 
role in the management of British companies. Now 
bodies like the -100 Group of Finance Directors are 
becoming more vocal 

9. iEieraatiorial Keiafionsltips 

The growth of multinational business has brought new 
challenges for she accountancy profession, not least 
at the political level, a look forward to the World 
Congress in October. 

10. Training 

Should accountants be trained by profesrional firms 
or within industry? - Differences of view persist among 
- Chartered Accountants. 

11, Insolvency Business 

The wave of bankruptcies in tile recession has 
__ produced intense activity in the .insolvency . depart-? 

. meats of many accounting firms" — but there also 
been controversy about the activities of fringe 
liquidators. 

For furtlijer mformation aridfidveTtismg rates . . 
contact: 

Carmias Leon or Gavin de Carle 
The Financial Times limited 
10 Cannon Street, London EC4P 4BY 
. Tel: 01-24S 8000 
Telex: 885033 ElNTGtt G 

FINMSfCSALTIMES 

EUROPE'S BUSINESS NEWSPAPER 

The size, contents and publication dates oi Surveys 
in die Financial Times are ^subject to. change. at - 
the d&tifetUm of the Bdftior, - 




• — h «Kn 


1^5 




to -*c 3 sj 


* AK 

:A L^ 

>%* 


(A \ SENIOR LEASING 
vm CONSULTANTS 

yty £20-25,000 + CAR 

United Leasing Lid is a recognised market leader 
in the supply and lease of IBM computer 
equipment to the major companies of Europe. 
Their activities have significantly expanded to 
include “big-ticket” leasing of non-computer 
equipment SENIOR EXECUTIVES am 
required to direct growth in this area by: 

• Negotiating multi-million pound deals 
with banks and major lessors 

• Developing and extending U.L Us 
service -to current client 

• Leading a team producing complex 
lease packages 

Successful applicants will be aged around 30; 
professional and innovative; numerate; used to 
achieving results and capable of taking up 
management responsibility almost at once. 

Reply in the first instance to Nicholas 
Waterworth, Banking and Finance Division on 
01-242 0965 or write to him at Michael Page 
Partnership, 31 Southampton Row, London, 
WQB 5HY. 


Michael Page Partnership 

Recruitment Consultants 
London Birmingham Manchester 


m 



JOBS COLUMN 


Cold again • Dilemma • New business 


BY MICHAEL DIXON 


| IT IS with regret that the 
- Jobs Column lias to announce 
what might be described as the 
! shortest summer on record, 
i Only last week 1 showed that 
! the economic climate had 
[ turned warmer for unemployed 
j managers and specialists in 
| Britain. The evidence was that 
| from February to April the 
: tiftieial total or experienced 
higher-grade stair without jobs 
I declined by l per cent to 
i 136.017 — the first drop 
recorded m more than two 
years. 

Today tlie news is that 
between April 2 and May 4 
the wretched figure rose again, 
by 3 per cent to 140,075, 

Since the official figures will 
not be published until laier 
this month, I cannot show the 
monthly cismr.e tn each main 
category of work. Bui 1 have 
been able to calculate for each 
category roughly how long on 
average it would now take 
someone ihrown into registered 
unemployment to get out 
again. The result is alongside. 

Involved 

NOW to hotter, and somewhat 
bizarre news from recruiter 
John Courtis. Because of the 
“massive reuval" of the man- 
agcmcni-recruiimeni market, 
he says, his consultancy has 
been asked to headhunt two 
headhunters for a competing 
headhunter. 

1 cannot help feeling that 
there is a dilemma here. For 
the client concern i>* entitled 


Job category 


Average 
month* 
without 
new job 


Biologists 

8.1 

Senior secretaries 

tA 

Surveyor* 

8.9 

Aircraft, ship* officers 

9.0 

Data processing 

9.1 

Social and health 

9.1 

Estate agents 

103 

Legal service* 

103 

Sale* and marketing 

10.4 

Library, museum*, ?tc. 

10.? 

Company secretaries 

11.0 

DraughtspeopJe 

1U> 

Genera] managers 

11.5 

Accountants 

1L6 

Teachers 

ll.fi 

Production managers 

ll.fi 

Engineer*, technologists 

72.0 

Technical support 

113 

Purchasing 

12.5 

Personnel 

12.7 

Architects, town planner* 

12.7 

Other managers 

13.0 

E estimators, etc. 

13.0 

Chemists, physicists 

133 

O&M, statistics 

15.4 

Average 

113 


to have John Counis and 
Partners do all in their power 
lo put forward the best pos- 
sible candidates. 

Let's suppose Mr Courtis has 
identified the two best people 
on the market. 

If they are boner than him- 
self and any of his colleagues, 
lo put them forward would be 
lo act against his company's 
inieresls by giving superior 
strength in ihe opposition. 


If the candidates are not 
better than himself and his 
colleagues, to put them fa ward 
would not be in toe best 
interests of the cheat. Instead 
he ought to offer the two best 
people in his own consultancy. 

But while a philosopher 
might scratch himself bald in 
trying to resolve thai issue. 
John Courtis n evidently not 
bothered by it. 

The reason why his con- 
sultancy ha* been given the 
task, he adds, L that the two 
recruiters already employed in 
the other concern do not have 
the lime to do the search ihem- 
selves. They are too hard- 
pressed by orders from their 
own clients for senior and 
middle managers, mainly in 
accounting and data processing. 

This perhaps explains why 
the can d id aie-spec: tica non says 
lhat ability to generate new 
business is less important than 
demonstrable skill ip. control- 
ling and fulfilling asvignmcni> 
from established clients, liven 
>n. the recruits will be expeetc-d 
to do some marketing of their 
new company, which is pari of 
a biggish management 
consultancy. 

Previous success in recruiting 
at senior level is needed. The 
experience could have been 
gained either in a consultancy, 
in a company's personnel 
departmeni, or at the head of 
an aecnums or dala-processing 
operation with responsibility 
for rceruiting managerial 

Surimg salary will be in the 


£15.500-£ii.5h0 raase. The 
other benefits will include a 
company tar. 

Since Mr Courtis may not 
name the client he — like the 
other recruiters to be men- 
tioned later — promises tn abide 
by any applicant’s request not 
:o be identified to the employer 
without further notice. 

Inquiries in writing only, 
please, lo him at -twin Counts 
and Partners, 7e' V.'igmore 
Street. London WlH &QD. 


Pioneer 


THE AGE ranee usually 
parroted by people seeking 
executives is 35-45. But the .iob- 
offer being made by John Reid 
of ExecriTive Search on benaif 
of a London-based client is 
different. Candidates should be 
either between 30 and 35, he 
says, or aider than 45. 

Tlie post is that of business 
development manager with a 
thrce-year-nlii company pro- 
viding a financial informs non 
■service :o banks and other 
invesiins institutions, auditors 
and oMier corporate advisers. 

Applicants need to have 
earned senior executive rank 
and to understand corporate 
finance and accounting with 
particular reference to the tech- 
niques of measuring the finan- 
cial performance of companies. 
They should combine numerate 
and analytical ability with skill 
in presenting forecasts of per- 
formance to clients. 

Since the job is a new one. 
whoever wins it will have lo 


start by defining the full 
potential market for the com- 
pany's service?, deciding the 
main sectors of trie market and 
iheir different needs of finan- 
cial information, and develop- 
ing the company’s services 
accordingly. Close contact with 
established and potential 
customers will be of the 
essence. Responsibility is to 
the managing director. 

The baf'c -salary wili be about 
£15.000. Mr Reid says. But 
there will he a bonus lied ia 
ihe increased business genera- 
ted hy the new manager, which 
"should yield up to as much 
again.” Oiher benefits are 
negotiable. 

Inquiries lo him at Sa Symons 
Street. Sloanr -.rjuare. London 
SU'3 2T.T: telephone 01-730 0137. 

Middle East 

DUDLEY EDMUNDS of Robert 
Half Personnel (UK) wants a 
manager of treasury and opera- 
tions to work in Che Arabian 
Gulf for a Middle East bank 
with assets or more than 
U.S.$lbn. 

The newcomer will be 
responsible lo the deputy 
general manager for all foreign 
exchange dealings of ihe bank 
and for funding its various 
needs. While undertaking some 
dealing, the manager -.rill have 
the prime task of supervising 
the half dozen subordinate mem- 
bers of the dealing room which 
Mr Half says is equipped with 
the latest communications 
gadget ry. 


At least 10 j'ears of similar 
or closely related work i 5 
wanted. Candida tea must ba 
able to show full technical know- 
ledge of foreign-exchange and 
money-market dealings and 
their in-house managerial con- 
trol ability to manage a team 
of dealers, and Uie potential to 
go oui and gain now business 
lor the bank in ail international 
financial centres. 

Salary to I'.S.SIOO.OOn tax- 
free. with furnished accoinmor 
dal ion and other expatriate 
perks. 

Inquiries to Lee House. 
London Wr.rl. London EC2Y 
5AS; telephone 01-606 6771. 

Four similar 

WHILE AVE'RE talking about 
foreisn-exchanse dealers in the 
Middle East, four posts are on 
offer threuzh Norman Philpot 
of XPA Recruitment Services. 

Two of them are for chief 
dealers in Bahrain. One will be 
paid about S65.00D tax-free, the 
oilier around S60.0PO. 

The other two are for senior 
dealers respectively in Cairo 
and Kuwait. The tax-free 
salary in Cairo is up to S60.000, 
and in Kuwait around S55.QOQ.. 

All the jobs carry the usual 
range of expatriate benefits, Mr 
Phiipot adds, “and are with 
substantia!, well established and 
expanding banking institutions." 

Inquiries to hint at 60 Cheap- 
side. London EC2: telephone 
01-24S 3S12 or 3 or 4 or 5. 


fiance 

2,500 -qj 


— •• suae- 
•' " ; i- ‘i!nr 

: ' i: 


Director of 
Finance 

Financial Institution 

ouer£ 30,000 

plus substantial benefits 


SUBSI 

vrr 

- X l 1 


l. in; 


One of (be country’s largest and most prestigious 
financial institutions is to appoint a Director of 
Finance. Reporting to the Chief Executive, the 
successful candidate will have overall responsi- 
bility for all aspects of financial and management 
accounting as well as treasury matters involving 
the Investment of billions rather than miiUnmt 
of pounds. 

The Director will also be expected to go beyond 
the traditional boundaries of the finance function 
In identifying profitable new areas of business 
development. 

The person selected for this appointment will be 
demonstrably successful, a qualified Accountant, 
with a high degree of intellect, and a person with 
a frank and forthright management style that 
will command respect and support at all levels 
within any organisation. 

Aged early 40’s, he or she will have successfully 


Phillips & Drew 

Investment Manager 

Phillips & Drew wish to appoint an additional manager in their 
Pension Fund Department. The Department is concerned with 
managing the investments of a wide range of pension funds usually 
on a discretionary basis. 

The successful applicant will be a graduate and/or professionally 
qualified person with at least three to five years’ experience of 
pension fund investment management. The preferred a?e range 
is 27-35. He, or she, will join a successful team with first-class 
prospects in an expanding organisation. 

Remuneration will not be a problem for the successful candidate. 
Applications to: 

Caroline Barrett, Phillips & Drew, 

Lee House, London Wall. London EC2Y 5AP 








PANMUEE GORDON & CO. 

We have a vacancy in our Research Department for a Senior Mining 
Analyst to join our Natural Resources team. A relevant professional 
qualification and some years’ investment experience are essential 
prerequisites for the post. Candidates should be fully conversant with 
the techniques involved in valuing South African Gold Mines and will 
be familiar with U.K., South African and the major Australian Mining 
Houses. A working knowledge of the North American mining sector, 
while not essential, would be an advantage. Remuneration and 
prospects for personal advancement will provide an outstanding 
opportunity for the right individual. 

Please reply to: 

G. F. Hailwood, Personnel Manager 
PANMURE GORDON & CO. 

9 Moorfields Highwaik, London EC2Y 9D.S 


directed a finance function before, not necessarily 
within the finance sector; indeed applications 
would be welcomed from those in other sectors, 
possibly retailing. Experience of controlling 
a multi-branch organisation and an nnder- 
standing of City Institutions especially the gilts 
market are desirable. 

Remuneration will include a negotiable salary that 
is not expected to be a constraint for the right 
candidate, as well as other substantial benefits; 

Applications, which will be treated in stria 
confidence, shonld contain relevant details of 
career and salary progression, age, education and 
qualifications. Please write to Ml David Aarons 
quoting reference 205 6/ FT 
on both envelope and letter 


Haskins Sells 

Management Consultants 

128 Queen Victoria Street, London EC4P4JX 


Director 

European 

Finances 

Our client is the European subsidiary of 
a major international telecommunications 
and electronics group They have operating 
companies in the UK and eight other 
European countries. 

The Director reports to Ihe Managing 
Director with whom he will work closely and 
runs a department with wide responsibilities. 
These include functional control of the 
finance and administration managers in each 
European operation, financial planning and 
reporting, business systems and O&M. 
internal audit and head office accounting. He 
is also involved with tax and treasury 
decisions. The position, vacant because of 
the promotion of the present incumbent, 
involves considerable travel 

Candidates, mate or female, aged 
35-45, will be qualified accountants with 
experience oF American accounting 
requirements, have worked in Europe and be 
fluent in English and at least one other 
European language. They will have a record 
of both successful financial management 
and of contributing to decision making at 
board level, almost certainly in a high 
technology environment 

Based Home Counties, salary 
commensurate with responsibility and 
attractive to those currently earning £20,000. 

Please reply in complete confidence, 
quoting reference 1307, to David Thompson 
who is advising on this appointment 


Odgers 


MANAGEMENT CONSULTANTS 
0<igena7uiCoLtd.0it*0idB&td$i 
Laotian W1X3TD 
01-4396311 


MANAGING DIRECTORSHIP 
With 50% Equity Partnership in new 
. . Marketing Company 

Dynamic executive able to demonstrate a commanding track 
record will be ottered a 50% equity participation and a Managing 
Directorship In a new Marketing oompany based in Southern 
England and associated with a group developing neiv consumer 
durable product leaders for ine U.K. ana abroad. 

Only those with the highest standards should apply; writing in the 
7 . first instance io> 

Ttie Chairman 
Austin Thomas 
86, Eaton Place 
London 5W1X8LN. 


| ST. DUNSTAN’S 
.COLLEGE 

The Impending retirement of his prrwnt 
secretary means that the Headmaster 
of this Independent public dav *eh»l 
for boys is seeking someone to rwace 
her. This Is a lull- time appointment 
Demanding ability to Deal with pewit, 
high shorthand and typing speeds, a 
willingness to use audio, ana proven 
administrative skills. An ckpericnccd 
and mature person » sought to *om- 
MrKt ip September. Good salary 
related to oualiflcatlont. ape and 
experience: four Meeks’ holiday i non- 
contrlbatofY pension scheme. 

Applications with c.w. and names 
and addresses of at less! two referees, 
one of whom should he thy present 
emelaver. should hr addressed to the 
Headmaster. 5L Daman's Collsoe. 
Citforf, London Sfifi 47*. Id nr Tire 
not later than Monday. 2*th May. 


HENDERSON 

ADMINISTRATION LTD. 

Securities Administration 

Henderson Administration, which manages funds for 
investment trusts, unit trusts, pension funds and 
private clients, is seeking an experienced person to 
assist the Manager of the Securities Administration 
Department. 

Candidates should have held posts in several sections 
of a bank or stockbroker’s office. 

Attractive remuneration package offered in an 
expanding environment. 

Write with detailed curriculum vitae lo: 

Brian C. Day. Manager, Administration Services 
HENDERSON ADMINISTRATION LIMITED 
Lowndes House, 1-9 City Road, London EC1Y IAA 


Financial Director 

International Project Management 

The company manages specialised construction and electrical 
engineering projects overseas. Part of a maior listed group, ithas 
expanded rapidly to its present turnover of £30m and is now 
formulating plans for further growth, development and 
diversification. 

The financial director will be a key member of the executive and will 
contribute actively to company profitability; advising management 
on the financial impact of business decisions, determining the 
structure of contracts and maintaining systems to provide dose 
accounting control on their progress. 

A qualified accountant is required who can demonstrate commercial 
awareness of project finance and control; whose professional 
expertise will command respect and who can act with authority 
when working with experts in other disciplines. Age: around 38. 

Remuneration: about £25,000 plus car and otherbenefits. 

Location: North of England. 

Please write in confidence to FJP Hall [Ref 882F] . 


Thomson McUntock Associates 70 Finsbury Pavement London EC2A1SX 


| COMMERCIAL AND BANKING 
I CITY SOLICITOR £20-30,000 

■ A major US-based bank with an established presence in London seek a solicitor having 
five or more years of post-qualified experience. Professional background should ideally 

■ include working for a firm of solicitors representing an international bank. 

A highly-motivated person with a knowledge of Sterling and Euro-doliar lending, eom- 
H mercial and securities law, takeovers/mergers and general domestic commercial practice 
M is sought. 

H As sole London member of a legal team this solicitor will be responsible for ail local 
H matters affecting UK operations, drafting and negotiating finance documentation and 

■ liaising with outside counsel. 

■ * r ** envisaged that there will be an initial attachment to the US head office of about six 

■ months and some overseas travel thereafter is likely. 

fl * n addition to the salary as indicated above, usual bank fringe benefits including car and 
subsidised mongage will be paid. 

To apply for the above appointment ; send your curriculum vitae or write J telephone for 
an application form quoting reference A B,'C.50. 


Peuter Simkin 







LEASING 

PROJECT FINANCE/LEASING EXECUTIVE b^Sooo 

A major international bank have a senior vacancy in their UK project 
finance/leasing division. In addition to proven negotiating/marketing 
skills candidates must have experience of the more technical aspects 
such as documentation, computerised lease evaluations, risk analysis, 
and syndications. 

LEASING EXECUTIVES mooo^ car) 

A major US bank require a UK marketing executive. Candidates must 
have the ability to successfully negotiate large ticket deals covering both 
leasing and industrial hire purchase, in the ££ m plus range. 

In addition to marketing candidates will be responsible for risk analysis, 
documentation and lease evaluation. 

CREDIT ANALYST/ASSISTANT TO MARKETING „ 
MANAGER LONDON AND BIRMINGHAM (25-30) c 

A US bank requires two credit analysts with several years banking or 
leasing experience, jf you possess an A!B, a degree or are a recently 
qualified ACAand have some experience of corporate taxation or leasing 
then these positions offer excellent career progression. For this 
Birmingham opening, initial training wili be given in London. 

Please telephone or send a detailed curriculum vitae in 
confidence to Brian Gooch. 

Jonathan 

BANK RECRUITMENT CONSULTANTS 

4 JTTlHfl 170 Bahopsgate- London EC2M4LX ■ 01 6231261 





W4 


Financial Times Thursday May 13 1982- 



Jardine Fleming 


OPPORTUNITIES IN 
OPERATIONS 


MANAGINe DIRECTOR 
INSURANCE BROKERS 


Investment Manager 

Hong Kong 


Jardine Fleming is a Far Eastern merchant bank headquartered in 
Hong Kong with branches in Tokyo, Manila and Singapore. It manages 
substantial international funds invested principally in SoulhEast Asia and Japau. 

A.lurther executive, age twenties or eariy thirties, is required in Hong 
Kongtojoin theexistingsmall, livelyfund management team. Responsibilities 
will include management of a number ofaooounts and a dose involvement with 
overall investment strategy as well as preparation of portfolio reviews. 

The successful applicant will:- 

- have at least two years’ previous investm ent man agement experience 

- be able to work on own initiative 

- be interested in a co ntinuing career in investment management with the 
Company. 

A generous salary with bonus, expatriate benefits and travel opportunities 
will be offered. The position offers excellent prospects for advancement. 

Applications, to indude a curriculum vitae and current salary' will be 
treated in the strictest confidence and should be sent to:- 
P.AT'. Gifford, Robert Fleming & Co. Limited, 8 Crosby Square, 
London EC3A 6AN.Tel: 01-63S 5S58. 
or C.C Grubb Jardine Fleming & Co. Ltd, Connaught Centre, 

GPO Box 70, Hong Kong. 


ORION ROYAL, a major international 
merchant bank, is the flagship of the Royal 
Bank of Canada’s World Trade and 
Merchant Banking Divisions, which offers a 
comprehensive range of financial services 
worldwide 

As a result of internal re-organisation 
within the Operations Department^ we 
have the following vacancies: 

Loans Administration — Senior 


WaU-utattufttd Insunnes Broker, 
■ge operating in major dor requires 
a fully experienced M.D. to further 
develop en already profitable com- 
pany. Remuneration by way of 
basic salary of 


I 




£12,000 p.a. 


plus attractive bonus on profit 
scheme, luxury motor car, pension 
and other benefits. Ail applications 
will be dealt with utmost confidence. 

Replies to Box A.7BS2 
Financial Timas 

TO Cannon Street. London EC4P 48V 


Engineering 

c.£i6,000+car 


BO YOU UNDERSTAND 
MONEY? 


A person who has a minimum of 5 years’ 
experience of administering syndicated 
loans in a leading bank and who has the 
potential to supervise a section of the Loans 
Administration Division. 


Eurobonds Setdements-Senior 
A person of supervisory level who has 
previous experience of Paying Agency trans- 
actions. Good te chnical knowledge of 
Eurobond Settlements together with ‘man 
management* ability will be required. 


HAMBRO LIFE ASSURANCE 
ARE LOOKING FOR 
SALES PEOPLE THAT DO 
Our specialised and continuous 
training, coupled with hard work, 
energy and determination will do 
the rest. 

In 1381. more than 350 of our Sales 
Associates earned in excess of 
£15.000. Many had no previous 
experience. 

Successful applicants am likely to 
be between 25-55, live within 40 
miles of London end highly inde- 
pendent by nature. 

PLEASE TELEPHONE OT-405 5361 


- ' ■‘5. • 



Petroleum 

Trading 


Top appointments in London, 
Rotterdam, Middle East 


GHR Energy Limited is a 
privately-owned American 
corporation, the 18th largest oil 
refiner and 25th largest natural gas 
producer in the USA. Our gross 
annual sales revenue of $4.5 billion 
puts us amongst the top 100 US 
companies: the result of 
aggressive, highly successful 
product marketing and trading 
strategy combined with unrivalled 
technological advantage. 

Wb now Intend to repeat this 
success in Europe with an 
ambitious plan. We are therefore 
seeking creative, profit-motivated 
petroleum professionals to build, 
manage and operate this business. 

For both LONDON and 
ROTTERDAM we require 

MANAGING DIRECTORS 
PRODUCT MARKETERS/ 
TRADERS 

BUNKER MANAGERS 

In LONDON and the MIDDLE 
EAST we require CRUDE 
OIL BUYERS/ 

TRADERS 


In ROTTERDAM 
we also require 

OPERATIONS/TRAFFIC 
COORDINATOR 
BLENDING/QUALITY 
CONTROL CHEMIST 


Candidates should be keen to undertake re- 
sponsibility and to use initiative. Excellent 
career opportunities exist during the next 
few years as Operations Department imple- 
ment automated procedures to support an 
increase in the volume and complexity of 
nansactions in the financial markets. - 

In addition to an attractive salary, thfe; com- 
pany offers excellent fringe benefits, in- 
cluding a house loan facility at 4% interest 

per ann um. 

Applications in writing or by telephone 
to Keith Wood — Personnel— 1 London 
Wall, London EC2Y5JX. 01-600 6222. 

« ORION ROYAL BANK LIMITED 

A member oi TheRoysIBankoiCanada Group 


TREASURER 


A aroni ns mefet-aatiOftxl company in 
tfre tetaore htdustrr rectum* a treasurer 
With * Rihrlmum of two years .relevant 
lT> te i n g Ho na experience. Resoonwtall- 
tres wttl include liaison with banks to 


organise ftrodlmj in the £5-10m range 
and nW Initially efttab soma account- 
ing emtohement to .be reUMPfehed as 
the posMon tl evelep s . 


Hesse contact: Diana Warner 
JONATHAN WREN 
Sank W e cm itm e n t Cons oka nta 
170 BUhcwwta. EC2M 4UC 
Tel. 01-623 12W 


An ACMA/FCMA with a successful record if* 
mechanical engineering who can work effectively 
from fhe shopflooi* to the boardroom ts required 
by a profitable engineering company with a 
strong product range and a turnover well in 
excess of £1 0 million which includes a substantial 
export-content. \ 

The position embraces all aspects of finan- 
cial management and accounting, costing and 
product pricing, forward planning, budgeting 
and data processing. Particular emphasis lies on 
improving ' controls on- manufacturing costs, 
applying standard costing and reviewing 
reporting formats; and providing financial Input 
at board level. Future prospects, dependent on 
dear cut success, are most likely to be in general 
management. . 

Age 30-40. location, Western Home 
Counties with relocation assistance available. 

Please apply In confidence quoting refer- 
ence 6091 to 


Brian Mason 

Mason&Nuise Associates 
Northwest House 
U9-127 Maryiebone Road 
London NWi 5PU 
Offices in London & Birmingham - 


Mason 

&Nurse 

Selection & Search 


Applicants tor all posts should 
have an appropriate level of 
practical, relevant experience, 
together with the entrepreneurial 
skills to anticipate opportunities and 
overcome problems in the 
marketplace. Remuneration will be 
substantial and performance- 
linked. Benefits, including 
relocation if required, are in line 
with top international practice. 

Please write with ton personal, 
career and salary details to: 

Arthur Kaivert, Director of 
Personnel, GHR Energy Limited, 
98/99 Jermyn Street, 

London Wl. 

Alternatively telephone 
him On 01-930 9521 
for more information 
and to arrange an 
early interview. 


EDITOR 


INVESTORS CHRONICLE 


A new editor is to be appointed for 
the Investors Chronicle, the leading 
weekly magazine covering business, 
investment and finance. Applications 
are invited for this important position. 

Please write in confidence to J D 
McLachlan, Managing Director, The 
Financial Times Business Publishing 
Limited, Room 608, Bracken House, 
Cannon Street, London EC4, before 
31 May 1982. 



Selection 










INVESTORS 

.cmoismE&R^vMj 


FOREX 

APPOINTMENTS 


For Forsx/Treasury/LIFFE appoint- 
ments discuss your needs, at no 
cost, with a specialist. 


TERENCE STEPHENSON 
13/14 Little Britain 
London EC1A 7BX 
Tel: 01-606 6834 
30 years market experience 


Bankers 


Zurich 



Investment 

Analyst 

Japanese Market 


Our client, a major international 
institution, seeks a young analyst of 
high calibre to specialize in the 
Japanese Ma rkeL 

The successful candidate will have 
thorough experience or investment 
research gained over one to four years 
within a stockbroker or institution and 
will probably be a graduate aged 22-25. 
Whilst knowledge of the Japanese 
Market would be an asset, proven 
analytical ability and a keen interest in 
Japan are more important 
The position win involve taking over 
responsibility for coverage of the 
Japanese Market working closely 
with the fund manager and 
contributing ideas and recommendations 
towards the management of the fund. 
Remuneration will be attractive to the 
right individual and will include a basic 
salary plus benefits. 

Please contact SLephen Emblcton or 
Elizabeth Evans, who will treat all 
enquiries in the strictest confidence. 


SENIOR CREDIT 
ANALYST 


Circa £9,500 p-a., plus car 

Chartered Trust pic, one of the country’s leading financial 
institutions, and a wholly owned subsidiary of Standard 
Chartered Bank pic, wishes to appoint a Senior Credit 
Analyst at its bead office in Cardiff. 

The successful candidate will be responsible for advising 
the Company as to the viability of clients’ businesses in 
relation to proposed or existing advances. 

This challenging opportunity, which arises as a result of 
internal promotion, should appeal to candidates who are 
professionally qualified in an accounting or banking 
discipline and who probably hold a degree. A minimum 
of 3/4 years’ post qualification experience is required, 
ideally in a financial advisory or related capacity. 
Candidates must have a mature and self assured approach 
coupled with an ability to liaise effectively with senior 
management Some travel to clients’ premises within the 
United Kingdom is involved. There are prospects of 
development not necessarily confined to the Credit 
Department 

A competitive benefits package will be offered which 
includes a Company car, eligibility to join a subsidised 
mortgage scheme and generous assistance with relocation 
expenses, where appropriate. 

Please write, in confidence, giving career details to: 

P. JL Symes, Training and Development Manager, 
Chartered Trust pie, 24-26 Newport Road, Cardiff CF2 1SR 



CITYOF LONDON 


Morgan Guaranty seeks, for Zurich, 1 or 2 
Bankers with up to 5 years' experience in 
commercial lending, securities under- 
writing and/or placements. The 
appointment includes the opportunity of an 
international banking career 


Town Clerk 



Applications are invited for the position of 
Town Clerk, which will become vacant in 
September 1982. The Town Clerk is the Chief 
Executive Officer of the City Corporation. 

Candidates should be able to demonstrate 
proven leadership and management ability in 
Chief Officer or other senior posts in local 
government and be notless than 40 years of age. 

The salary scalefor the Office is £31908 per 
annum rising to a maximum of £34,710 per 
annum inclusive, byfour annual increments. 

Full particulars and application form from 
The Town Clerk, Corporation of London, 
P.O. Box 270, Guildhall London, EC2P 2EJ. 
(Telephone 01-606 3030 Ext 2422). 

Completed application forms to be returned 
by the 28th May 1982. 


Permit ‘O' holders and Swiss Citizens 
should please apply with brief career 
details to: Karl Burki, Vice President, 

The Morgan Guaranty Trust Company of 
New York, Stockerstrasse 38, 8022 Zurich, 
Switzerland. 


The Morgan Bank 


Chartered Trust 

A member of- ■/ 

Standard; Chartered Bank Group 


Stephens Associates 

international Recruitment Consultants 


44 Carter Lane. London EC4V 5BX. 01-23* 7.W 


AMBITIOUS GRADE III or IV’s 


Expanding subsidiary of major international group 
seeks experienced staff for UK lending business. 


Contact: 

Mr. D. Barnes. Personnel Manager 

BANK LEUMI (UJK.J LTD. 

Tel: 01-629 3205 . 

4/7 Woodstock Street, London W1A 2AF 


DEALER 

required with in-depth knowledge of the 

FOREIGN EXCHANGE 

and 


DEPOSIT MARKETS 

to assume the role of No. 2 in the dealing 
operation of our London branch scheduled to 
open in the latter part of this year. 

Applicants (aged up to 30) must have a 
minimum of five years’ trading experience to 
include CDs and other instruments. 

Salary negotiable circa £18,000 plus benefits. 

Applications, with curriculum vitae, should be 
sent in confidence to: 

Dr. M. Hoebart, London Representative 
BADISCHE KOMMUNALE IANDESBANK 
Princes House, 95 Gresham Street 
London EC2V 7NA 


EXECUTIVE POSITION 
with 

LITTON AERO PRODUCTS 


Immediate opening for a manager of international contracts 
who will have the capability to negotiate and administer 
contracts covering the sales of commercial aircraft avionics 
and services. 

Executive will be based in London. Travel required 
throughout Europe. Middle East and Africa. 

Applicants must possess a university degree in engineering, 
business or law. Only applicants having in excess of twenty 
years* contracts experience will be considered. 

Salary commensurate with experience: 


Rseum£ and salary requirements should be sent to: 

Mr. B. A. Snyder 
LITTON AERO PRODUCTS 
36 Hertford Street. London. Wl 


BANKING 


SENIOR ACCOUNTANT c. £12.500 

Active City bank seeks an expariancftd international bank 
accountant to cover a wide range ol financial analysis, account- 
ing and control functions. 


LENDING SUPPORT/ ADMIN. c. £11,000 

Expanding international bank extends challenge and responsibility 
to s young banker with a Strang background in loans admin, 
and some exposure to analysis and syndications. 


JUNIOR F/X DEALER £ neg. 

An opportunity (or a young dealer with c. 2 years' experience 
to assist with the development of a prominent international 
merchant bank's dealing capability. 


CREDIT ANALYST(S) c. £10,000 

A number o! City banks offer excellent career prospects to 
young Graduates/A.I.B.s with sound credit skids and patent 
marketing potential. 


Please telephone Ann Costello or John Chhierton A.I.B. 

John 

Chiyerton 

Associates Ltd. 01-6233861 


item 


WANTED: 
SLIGHTLY USED 


Asfley & Pearce Limited 


require experienced foreign exchange and deposit 
dealers for their Dublin office. Applicants should 
be 22-27 years of age 


Please re&yin strictest confidence to: 

J. K AT. Cbe&tham 
SO Cannon Street. La* 



If you are an able, experienced executive or professional person, 
yetsomehow are not making the most of your potential, 
perhaps you need atiew approach to your career. 

To team how ‘slightly used’ executives have profitably renewed 
uw careers, telephone for a free, confidential appointment 
with a consultant, or send us your cx. 

Gichusid sr.w.1. 

M *“ /K * a *-* MawhemnOM-aMOM?, 

mm ProEesscrtah in Career CounteSng SurtyBtttfcfcPtodtyHia 

gf.1. . ■ T lff‘rt aB«iii 'Outplacement* toerartsafere, thro^oir' 
jflilfauJ company UndcrCorp o rwn ServaasUroitod. Addrasasabowc. 









* H 


r : cn.ls- 

serins* 1 

under- 

rtunitydz 


iQS! 1 - 1 , 

r.^nys 


lank 


i'. 


Financial Time's Thursday May 13 19S2 


C«JA 




RECRUITMENITFC ONSULTANTS 

35 rvievv Bc^d.Si^e'fet^lSjnqlon ECSfyj lIMH 
TGl:01-5SBr35SB'or QtU5SS 35TS - <"C . 

Telex 


f 


Significant promotion opportunities exist in 18-24 months in Europe or overseas in line with the organisation's 

commitment to international development. 


PROJECT FINANCE MANAGES 

LONDON ATTRACTIVE TOTAL REMUNERATION 

INTERNATIONAL EQUIPMENT FINANCE COMPANY — AFFILIATED TO MAJOR INTERNATIONAL BANK 

Suitable candidate; may bo aged 26-34 with at lent 4 year/ banking experience including practical knowledge of cross-border 
equipment finance. University graduates preferred and an additional qualification — M.B.A f Chartered Accountant or 
Solicitor— win be useful. The successful candidate will have a track- re cord of finding, structuring and closing complex 
equipment financing deals, and will join a specialist team covering Europe, Middle En^s and Africa, Transaction average 
size will be U.S.SI5 million with emphasis on ships, aircraft and offshore equipment, etc. initial remuneration will include 
basic salary up to Cfl.C&Q plus attractive prefir sharing and performance related bonus, in addition to car. non-contributory 
pension, free life assurance, family BUPA, reduced rate mortgage and loan facilities. Applications in strict confidence under 
reference PFM!4l26>F? will be forwarded unopened to our Client, unless you list companies to which they should not 
be sent in a covering letter marked for the attention of the Security Manager: 

CAMPBELL-jOHNSTON RECRUITMENT ADVERTISING LIMITED, 35 NEW BROAD STREET. LONDON EC2M 1NH. 


David Grove Assodates 



Bcr.lc Personnel Recruihnenf 



60 Cheopside, London EC2 V 6AX. 



Te'ephone: 01-248 1858. 

f « m ■ M 

In ■■ ■ 9 

9 

infill a 






Opportunity exists to become 3 senior consultant in the U.K. with direct client responsibilities 


OUR CLIENT A we!! established recognized Gty-based subsidiary of substantia! French 
Banking institutions. 

CANDI DATES Should be skilled in all aspects of commercial banking, able to demonstrate a 
successful record in the spheres of business development, credit and 
management gained in the Gty, preferably in a large International Bank. 
Overseas experience would also be useful. A working knowledgeof French 
is required. Preferred age c.40 years. 

THEJOB Responsible to the Managing Directorforpolicyand the day-to-day control 

and overall management of the Bank's Creditand Marketing department; 
to develop the Bank’s International business; to combine, and enhance, the 
skills of existing and potential personnel into an effective team. 

THE REWARDS An attractive salary package which reflects the importance of the appointment 
and the potential to increase responsibility at Senior Executive level. 

The minimum basic salary envisaged is £25 ,000. 

Please contact David Grove either at the above address or by 
telephoning 01-242 1858/9. 


CANDIDATES 


ACTUARIAL AS 


THEJOB 


LONDON £7,000— £10,500 + BONUS + STUDY LEAVE 

LEADING FIRM OF INTERNATIONAL EMPLOYEE BENEFIT AND COMPENSATION CONSULTANTS 

These vacancies, which occur through expansion, srs open to candidate:, aged 21-30, who art part-qualified actuaries wirh 
between one and four years’ practical experience in a pension consultancy, insurance company or the fund management side 
of a financial institution. The successful candidaiei will work in London as part of a t?ani responsible for actuarial valuations, 
computerised pension plan administration, benefit design and consultancy work on behalf of U.K. and international companies. 
Full training will be provided. There is also a vacancy for an actuarial assistant to specialise in and develop the company's 
established investment performance measurement services. The ability to ccmmimicati- lucidly and warrant further promotion 
in the short term is important. Initial remuneration negotiable £7.000- £10. SCO ■+■ bonus -i- study leave, contributory pension 
and life assurance. B.U.P.A. Applications in strict confidence, under reference AA237/FT, to the Managing Director: 

ADMINISTRATIVE & CLERICAL PERSONNEL LIMITED (RECRUITMENT CONSULTANTS). 

3S NEW BROAD STREET, LONDON EC2M 1NH. TELEPHONE: 01-508 3588 or 01-588 3576. TELEX: 087374. 


’ Unless you are -applying for any of the above position: please do not write to us. 


Bank Recruitment Specialists 

I! INTERNATIONAL BANKING 


MIKE POPE ft ASSOCIATES 

Bank Recruiemene 

Consultants 

ASST. REGIONAL 

HEAD OF 

OPERATIONS — BAH 

TAIN ,M.S::c 

cJii uipanoncs t_ 

Ma::c “C.iion: 

level) 

To STD. OOO 

BUSINESS DEVELOP 

VENT MAN- 

ACER — BAHRAIN 

.V-.oj:-; 

East canarun;c) 

To K5.0C0 

CHIEF DEALER 

To 00.000 

F.X. DEALERS 

To C16.000 

bank accolmtant 

faC'v ■•»gur.. 

euL'cd nr,-l. AIBi 

To C1C C03 

CRAOUATE CREDIT 

t LENDING 

OFFICERS 

E MEG 

SENIOR ACCOUNTS CLERKS 


To ET0 .000 

( GRADE 3 AIBs 

To E7.0JC 

| Contact David Parrpn or Mike Pape 

1/2 Grace churcii Street. EC3 

| 01-626 SIS 



INVESTMENT MANAGER 
to £20.000 

For i leading bcsiuiioail matlmi* hank. 
Fuinv'ce ujt-irre: is required n ihe maiufp- 
mcn: of ftsril income nuliiounrru? tents. The 
successful c.mdi'Jire will join no eUaWitheJ 
professional invest mem oaupmcni team. 

OPERATIONS MANAGER 
to £20,000 

Required by the small bo: well-established 
London Branch of an mirrruirona! bank. Tne 
score of ihs appointment intiitdcs the see cue me. 
F iX and lean: administration, perMinnel. 
premise:. and general banking areas, reference 
wodd be ai' cn to somebody with knowledge of 
the ■Xjipili* software intern. 

CREDIT/LOANS 
to £12,000 

An nU-round lending' hanker, ideally ejeed (ate 
20 t, is sought by trjnaier hank for a varied rfile 
within a brnycredit'kod ins departoem. Ideally, 
previous experience should include credit 
analysis Euro /S:er line loans admin., and 
unaomcr negotiations, but favourable consklera- 
tiois would be given to a hifih-cabbre Credit 
Analyst interested in obtaining more comprehen- 
sive experience. 


SPOT DEALER (SENIOR) 
£16,000 + 

We seek ■ seasoned. bigb-caUbre Snot TrX 
Dealer tagril late 2ltyearly 3C-.L qualified by 
experience la bend the Spot dcaltac area of a 

E rinse tank. For the right person, salary trill not 
e a limit mg factor. 


COMMODITY FINANCE 
OFFICER 
c. £16,000 

A particularly inicrc-.un*: appniimnent, caUms 
for n ler.d-jij banker wnh evrener-.c ir the 
ewnmodli'C* vector (nuirc especially n.et.il.i. 
Prior tTcdfie-srerienceisav. ameiias rs tantilioruy 
with the docuraenrstioa requirements of com- 
modity lending. The position i-. London based, 
inrolr in; some European travel and requiring a 

knoniedfie ofiulnm. 

LEASING EXECUTJTVE 

A marketms-orienfed Leasing Eweturar. wish 
a successful tract record in the big-dukcl mid 
Buddfe-tichei ranpes, is sought by :m oi'pvr, 
expanding Lease Ureter in Ihe City tjw.n af a 
major financial £rnupi. This is n clinHciipins 
opport-jniry, nJTcmw: io the rip.Jit penmo the 
possibility of substantially increased income. 


BOND PORTFOLIO 
MANAGER 
c. £12,000 + bonus 

Internal iomil investment bank seeks an e-- 
pem-ured, iinibilinu-. individual, sited up to 30, 
to like mpiHisihilsiy lur lit Bond prullulio. L>p- 
tijrd. uf f,.v, yeais* active tradinc evpcnntce ts 
>n ism — nri-irri'hly Liiro nr U S. damcstic. 
Aurucitve Inner benebts are offercJ. 

FLOATING RATE NOTE 
DEALER 

A new .-ppo'mttnrnt. with a top name. Only a few 
indmJu.it-. ir ttie Citv hive the required back- 
ground. rjiurally. The nriiost lUinlnlen'iality i: 
guaranteed to any potentially interc-.teJ panics. 

SENIOR CREDIT ANALYST 
Middle East 

to c. £20,000 -h bonus, tax tree 

A permanent appointment with n major Gulf 
haul:. licRiiiotlins a mature international banker 
f25^3S> with a tuiL-krruund of at least four years 
m credit analy-.is. The position alters the possi- 
bility of broadening one's experience in rough 
involvement with u substantial and varied loom 
portfolio, vriih future prospects lying either 
within the credit Cclil or in business development. 


Please contact Ken Anderson or Leslie Squires Telephone: 01-248 7421 or 01-248 8876 


Anderson, Squires, Bank Recruitment Specialists 
Regina House, 1-5 Queen Street, London EC4N IFP 


Anderson , Squires 


ASSISTANT TO SENIOR PARTNER 
NORTHERN FIRM OF 
STOCKBROKERS 

V. c 11 Kia^liLiieJ ere.-rcic s.-n 
■i nirirn jars 25 35 -/s:r; >o a::i't 
Uv.i.o,- P;rri.L' In ,r«i. i t -.an 
men: of ma.nr, pri.aro Cl-Pii: porllD'.li 
Thn iiand-dare -.na-jiJ n».* at ie.nr 
5 vear: rvipcrlcric .n its 
iicifl arte nave ea-.^eu s:o:f 

Esiiijnci- Etartiratisn He :nj s-ouie 
ru- .lBle ta (-,mmviuciv :a:ce".;t-jii» 
with tfimii j r.i an cliLnU.'e 

MOiita co an advantase. 

Pi/-j:e «n*r cneiosno a c-rricufum 
tliji- to Sc* A 73SB. Crania. T.ea. 
10. Cannon Svex-t. LOMBR £C4P 4BY. 


FINANCIAL SALES 
US. bas-?ii (in'ne-ai «mnjniutoi« 
canioni with UK oihee iOBv.i-i to hie 
uaioi p erven tar <:•. arcwir.n ce-iTe'er:c 

dm-.ion. Pf/iou: saias ejoc.-.crre 

oreicTTtrd av w.-ir vome ' nawineqo 
ot i.-a.incc. I'ny.-acsl. . aar: f-o-n 
r-..'.-lli-c-t E-iql-vi-. .i'Cu‘-i -v 'trer.a 
Malian .ii*e vneoraarr. Saan,:h. 

pieave 31*1-0 lull C.V. ana teieo.isiw 
numanrv to. 

Ms. Susan Lalim. tnvtitullonal Investor, 
Sardinia House. 52 Uateln'S tan FielcH. 
London WC2A 5LZ. Tel: 01-104 5252. 


APPOINTMENTS 

ADVERTISING 

RATE £29.00 
per single column 
ceniiinelre 


Assistant General 
Manager-Marketing 

Air New Zealand Ltd. 

This posfron. which becomes wftfi fhe accent veiy much on 

avai&le because of retirement profitable development of activi- 
is on? of four AGM posts ties. The location is Auckland, 
reporting to tne Chief Executive, The salary offered is fully 
represents a funcamenfaliy competitive, being comparable 

impc nan: and pivotal roie in the to that of general managers of 
recovery programme of the size a ole rompanies. A company 

company. In planning its early car and appropriate fringe 
return to" profitability Air New benefits are supplied. Relocation 

Zealand, which has some 8,000 expenses will be reimbursed, 
e maloyees anddomesticand Appi icat 0 ns a re inv ited from . 

intematona; saies running at senior marketing executives 

about NZ$700 million pa, has with superior performance 

recently commenced a major records in line management in 

organisational restructuring. large and complex enterprises 

utilising sophisticated analytical, 
Tffs appointment provides an planning and control 
outstanding opportunity to techniques. Prior experience in 

revitaiise and develop the the air transport or travel 

marketing activities, ana hence industries would be of 
the fortunes, of an airiine which advantage, other things being 
enpys world-wide recognition equal , but outstanding 

fer the excellence of its professional marketing expertise 

standards of sen-ice and its is the more important criterion, 

modem fleet. The appointee will Security: The strictest 
lead a major division with wide confidentiality is assured, 

ranging functions, including Please forward appropriate 

head office specialists and details, quoting ref; 753. FT, or 

regional sales marketing direct any enquiries to: 

managers /based in three local E. R. Harrisson , Manager, 

and five overseas locations), Personnel Services, 


PA Management Consultants Ltd., 

PO Box 4178, Auckland 1, New Zealand, Telephone Auckland 32 718. 



A c-.\ c 4 !r,:^r.-.a:'cn^J 


Group Company Secretary 

Lancashire • £16,000, bonusandcar 


This profitable public group (£70m. sales, 
over 3,000 employees) dominates its consumer 
durables market sector and rs financially strong, 
tightly managed and aggressively ambitious. 

The Company Secretary, a member of the 
Group Executive, carries the full range of legal, 

corporate and secretarial respon- 

sibiBties" including insurances, j-v * 

patents, pension and other benefits, #-w il 
Stock Exchange and shareholder rri 

relations. The environment is f-Jcyl 

dynamic, the standards exacting. 1 
Candidates, male or female, ■ 


FERSQNNELADWSEBS 


aged from the middle 30s, must hold appro- 
priate secretarial, legal and/or accounting 
qualifications and have experience as Secretary 
of a medium-sized public or large private 
company. 

Initial salary negotiable around £16.000 plus 
bonus; benefits include car, generous 
» relocation help. 

I Please send relevant career 

- details -in confidence -to 

Mnc D * A* Ravenscroft, Bull, Holmes 

FtCJi (Management) Limited, 20 Albeit 

Square, Manchester M2 5PE. 


IoAING & CRUICKSHANK 
US SALES 

The North American Department requires an 
experienced US Institutional Sales Executive to 
market the North American research product 
to UK clients. 

A competitive salary package will be offered 
to reflect experience and subsequent progress. 

Please reply in confidence to: 

Richard Henstock 
Laing & Cruickshank 
The Stock Exchange 
London EC2N1HA 
Tel: 01-920 9605 


Mellon Bank, N.A. 

London Branch 
requires a 

Legal Assistant 

for the branch’s Syndication and European 
Business Development Groups. The principal 
duties will be the preparation and negotiation 
of syndicated and non-syndicated loan and 
guarantee documentation under English law 
and the supervision of the branch’s agency 
function. 

This position is open to applicants with extensive 
experience in this work whether they have 
a banking or a legal background. 

Remuneration will be commensurate with the 
skills of the applicant 

Written applications including curriculum vitae 
should be sent in confidence to: 

Miss D. Thain, Personnel Officer 
MELLON BANK, NJV. 

15 Trinity Square, London EC3N 4AP 


OR 

Q&LES mg*"* 


ApP^'^Vlcetb. 

pitc.tor, suftipt* . . 

P.s. Sales 

. ss-i— s=!ssasar‘ 



EDUCATION AND CULTURAL 
SERVICES COMMITTEE 

EDUCATION HEADQUARTERS 

EDUCATION OFFICER 

(FINANCE AND ADMINISTRATION) 

Salary grade POZ(i). rang* currently £11.220 to E12.£0fi pa 

Thn succesvtul undntju will provide e comp.-ot-cr.-n.-e 
accountancy, b^dgatcry control and finan-iai aJv«ce rc- -a-j Cud 
EJ'i'.-ioo OiIilui and u;o va;,aus Brar.cfcci, Geaiions vt.lhn 
:hu Ccrartmenl. 

ADp:.c.'.r>ri ctioaid bo quataied accountents w.th 
L'-'-jI Co att nine fit e>ptrjcnru. 

Application firms ar.d lun-itr d3u;is tor tins new!/ i.-oat-d 
SL'i.rr nusi am av.wtable Iron) The Chief Education Qmcer, 

SI..R NT, County Ha,r. Taunio.t TA1 4DY. 
fji.Tr,'ip!?d a 'lore 5 :. >id envelope p;casa 

Clawing da:o lat tht receipt of completed appiice:i:n forme is 
21 May 1flo2 


Financial Journalists 

A leading International Business Publishing Group is recruiting 
journalists, experienced in the fields of banking, accountancy, taxation, 
financial futures, bullion and corporate finance for a* series of 
Newsletters covering international business and finance. 

Candidates should have an expert grasp of one or more of these fields 
and be able to analyse and interpret developments and events for a 
discerning international audience. 

Tiie ability to work under pressure in a demanding but stimulating 
editorial environment is essential. 

Attractive salary and benefits are offered. 

Please apply icith full details to Box .4.7559 
Fi7iG?icial Times, 10 Cannon Street. London EC4P 4BY 


TRADITION CITY DEPOSIT BROKERS 

are looking to expand their 
Sterling interbank Department by the addition of 

One experienced Money Market dealer 
and 

One trainee dealer 

Applicants should apply in writing to: 

G. D. Wand rag, 

tradition city deposit brokers, 

Stonchouse Court, Staple Hall, 87/90 Houndsditcli, EC3. 



B qS 


VI on 



r— — 



WEST COUNTRY STOCKBROKERS 

Require person to be responsible to Partners for supervision of 
accounting and settlement functions of small but busy computerised 
office. Pleasant walking environment. Salary negotiable. Reply 
with full career and personal details to: 

The Senior Partner. 

MILTON, MORTIMER ft CO-, 

21 Southcrnhay West, Exeter, EX1 1PR. 


JUNIOR ECONOMIST 

Required in Luton office by major U.S. corporation 
to monitor European macro-economic- developments 
and the automotive sector. Familiarity with build- 
ing and running econometric models essential. 
Knowledge of Spanish would be ar. additional advan- 
tage. Salary up to £10.000 plus car. 

Please reply to ftox.\7S51, Financial Tima 
10 Cannon Sfreci, London, ECMP 4BY 


EXECUTIVE BANKING APPOINTMENTS 

"THE DISCREET SERVICE FOR BANKS AND BANKERS" 

FOREIGN EXCHANGE DEALER £15 jmj. 

thp-rK 3 S'* merc, *J« hanf has dua to expansion «n opportunity io join 
successful dealing team. Candidates should heve a proven 
rnmiT 1 ° ound °*P er 'Cnce in all major currencies. 

CREDIT ANALYST £12.000 

■£.tpn»UL rap,d . ly BX P J , ndin 9 Europaon intornational bank sneka tm 
an ^ yst w, ’ h managoment potential. Fluent ,n a European 
language advantageous but not essential. ‘""PBon 

EUROBOND SALES/DEAUNG ns ««.. 

Hrannflu s * ,th . Mu " d experience in ih B Eurobond Market is 

S° yght a major City banking q.-oup. Candidatco should have 
with Va l |e 3 yCU,B 10 dea m ® Bnd ,h0 ■•biliiy/ willingness to be involved 

n? gw rTi-u lh? . ob -°” P° ait . io,lc Pi' 335 ' 1 contact Mr L. Marshall on 
D1-S88 0174 or wnte giving details □( experience to: 

M & 4 PBtSONNEL CONSULTANTS, SO BISHOPSCATE, LONDON, EC2 


Executive Appointments 

The specialist service lor senior executives secfcir- new 
appoir.!aiculs. Our success- rdjscJ fee siruaure is unique. 
Contact us fut a roaiidcmial meeting. 

Connaught m*- 

73 Gioavenoi Stie'et, LONDON W1 - 0 W93 6504 







Financial Times Thursday May 13 1982 


International Appointments 


FINANCIAL CONTROL 
IN BANKING Kuwait 

A major bank is developing its financial control division. This has created three new 
appointments which gwe opportunities far demanding 'work at senior level re a long 
established and highly respected restitution. 

Candidates must have an internationally recognised accounting qualification and their 
first language should be Arabic or English. Experience' of working in the Middle East 
will be an asset and university graduaies will be preferred. 

Details ol the appointments are:- . . " 

Senior Manager Accounting c£35,000 

The senior manager accounting wilt report to the assslant general manager finance 
and be responsible tor the operation of the financial control divtston. Duties will include 
responsibility lor the financial recording systems of head office divisions and branch 
operations and the development of computerised financial systems. The senior man- 
ager wilt also advise on the financial implications of the banks strategic planning and 
investment policy. 

Candidates tor this position should be in the age range 35-40 with at least 5 years' 
experience in banking including a period at divisional management level. Evidence 
of successful management of multi national staff will be required. Appointment 
ret FT 202 A. 


Financial Accountant 


c£28,000 


The financial accountant will report to the senior manager accounting. Respon- 
sibilities will include departmental management, maintenance of financial records, 
production ol annual accounts and liaison with auditors. A particular requirement will 
be working with the banks data processing division on the financial accounting 
implications ol new operating systems. 

Candidates should be in the age range 30-35 with at least 3 years' experience in 
banking includmg a period as a supervisor. The position will involve staff selection and 
training. Appointmen ( ref FT/212- A. 


Management Accountant 


(£ 26,000 


The management accountant will report to the senior manager accounting. Respon- 
sibilities ivili include controlling the management accounting department, the prepara- 
lion of budgets and forecasts and the production of special reports. Other duties will be 
liaison with the financial accounts department and assisting the data processing 
division with the management accounting aspects of new operating systems. 
Candidates for this position should be in the age range 30-35 with some supervisory 
experience. A period spent in banking or a similar sen/ice industry will be an asset. 
Appointment ref FT 222/A. 

Salaries are fax free at present, and benefits for each appointment make an attractive 
overall package as expected from a major institution. Applicants should send brief 
personal details and a career summary in confidence toD WE Apps quoting the 
appointment reference number on Ihe envelope and letter at the address below: 


EmSt & Whinney Management Consultants 
57 Chiswell Street. London EC IV 4SY. 




THE EUROPEAN INVESTMENT BANK 

is the European Community's bank for long-term finance. 

The EIB finances projects in the ten Member Countries 

of the EEC and in over seventy other countries in the Mediterranean, 

Africa, the Caribbean and the Pacific. The Bank's staff are recruited from 
Member Countries and work in multinational teams. The Bank is seeking a 

PORTFOLIO MANAGER 

aged 30 to 35. 

Candidates should be able to offer several years' experience in assets 
administration with a bank or financial institution operating internationally, 
and have conducted regular dealings on the capital market in securities issued 
in the main Community currencies and US dollars. They should be competent 
to assess the viability of a long or medium-term investment on the strength 
of the issuer’s raring and in the light of economic and political data on the 
country in whose currency the paper has been issued. 

The spread of languages in which the Portfolio Manager may be called 
upon to operate includes English, French and German. In addition, a basic 
knowledge of Italian would be useful. 

The starting salary for a married person will, depending on qualifications, 
be within the bracket of 100 00Q to 112 000 Belgian francs a month, net of tax- 
and social security payments, in addition to which there are allowances for any 
dependent children. The Bank also offers a comprehensive welfare scheme, 
including its own pension and medical insurance, education allowances etc. 

Candidates, who must be nationals of EEC Member Countries, should 
apply in writing, enclosing a detailed curriculum vitae and photograph, to: 

THE EUROPEAN INVESTMENT BANK, 

Recruitment and Careers Division,. - 
boulevard Konrad Adenauer 100, 

L-2950 LUXEMBOURG. 

All applications will be treated in strictest confidence. 


J 


SENIOR FOREIGN 

EXCHANGE DEALER 


One of the largest banks in the Middle East requires a Senior FX 
Dealer to supervise its FX unit. The applicant should now he 
working in a large dealing room and should have at least five years’ 
experience in major European currencies. Experience in Middle 
East currencies is helpful though not mandatory. Position based in 
UAE. Salary around $60,000 with generous benefits. 

Please send curriculum vitae to: 

TREASURY DIVISION, 

P.O. BOX 4, ABU DHABI — U.A.E. 

Attention: General Manager 


90, BISHOPSGATE, LONDON EC2N 4AS 
Attention: Manager 


— ■ Top Executives ■ ■ ■ 

Our clients find better opportunities. Are you interested? 

If yOM talents an being wasted, or yonr ambitions thwarted, tre can hdjk Our highly abaSad 
career management counsellors have aD been engaged in a Top Management role: They understand 
your problems. After evaluating your true potential through discussion and analysis, they work with, 
yon through all stages of tbe job search until you find that batter opportunity that is just light for 
yon. Most of these bettor opportunities are never advertised. 

We have an acknowledged standing m the employment market and an outstanding track record of 
success. That’s why we're confident that after a preliminary disco wkmyoa will appreciate why we 
a» able to offer the apeoalsffltef help that you wed. So why not ring ua today. 

MINSTER EXECUTIVE LTD. 28 Bolton Street, Xoodon 'WlYtKB. Teh 01493 130MM5 


KOREAN 

NATIONAL 

REPRESENTATIVE 
IN SEOUL 


The Hongkone and Shanghai Banking Corporation require a 
Korean national to replace the Group s representative in Seoul. 

The representative provides business intelligence and assistance to 
the Group's offices worldwide. Services are also extended to 
Korean clients and clients elsewhere wrho trade or wish to trade in 
Korea. He also represents the Group's local interests with 
correspondent banks and government agencies. 

Candidates must be Korean nationals with extensive experience in 
Enelish speaking environments and fluency in English. This 
experience will have been gained preferably in banking, or _ 
possibly in a large trading company with appropriate financial 
exposure at high levels. Probably aged 50-60, applicants may be 
working currently in an English speaking country and keen to 
return to Korea, w here the}- have good contacts in government 
and business circles. 

There will be an induction and handover period and this 
will involve travelling to other Far East locations, particularly 
Hong Kong. 

We envisage a 2 to 3 year contract initially, which will be renewable 
for a further period if mutually agreeable, with a salary package of 
at least US Dollars 24,000 per annum.The Group will provide a 
car w ith a driverand membership of the Seoul Club. 

Applications, with a full account of vour career and a day time - 
telephone number, should be sent to: 

A. M. Child, Hpl 

International Recruitment |(^ 

Controller. _ _ _ -» 

« i&gs Bank Group Hongkong Bank 

London EC2P2LA, M 

to be received by 24 May 1982. 1 TltVllD 


EMPLOYMENT CONDITIONS 
ABROAD LIMITED 

An International Association of 
Employers providing confidential 
information to its member 
organisations, not individuals, 
relating to employment of 
expatriates and nationals world- 
wide. 

01-437 7404 


APPOINTMENTS 

WANTED 


BRITISH EXECUTIVE 

with IS '•evs in. the USA wishes to 
locate companies neoihne representa- 
tion In. or liaison *Hth, the USA 
Electronics eaucaltaital background. 
work hlstorr Includes product support, 
sales and general management. Most 
recently President and General 
Manager <rf an "Industrial Products 
manufacturing company. 

- Write P.O. Box- 268. Mossrllle. 
Illinois. 61 552, USA. 


P.R.O. WOMAN — 32 YEARS 

Well-connected experienced P.fl.O. 
with Intamauonal background, also 
Qualified as bilingual English-French 
BimultanBoba interpreter. seeks 
appropriate appointment. 

Write SETEP REF. 4610 
SS e venue dos Champa EJys^ee 
75008 PARIS - FRANCE 
or phone Paris (1) 288.53.40 


Our client is an international market leader (T/O £1 00m. +) providing sophisticated 
computerised information to the business community. As a result of continuing 
expansion the following vacancies have arisen. Qualified accountants or business 
graduates will find these positions offer excellent opportunities for career 
development, for men and women, both in the U.K. and overseas in a fast moving 
environment using the latest mini and micro based computer systems. 

Finance Managers 

Europe to U.K. equiv.£15,000 

(plus allowances) 

The successful candidates will be appointed to the national team of a specific counby, 
probably within the E.E.C. They will assume total control of ali aspects of the local 
accounting function. Applicants in their late 20’s must have a good working 
knowledge of either French or German. Ref. 1 236/FT. 

Business Analysts 

Central London to £12,500 

These vacancies offer applicants the exciting opportunity to use their skills in a role 
which includes budgeting, planning and evaluating business decisions. Every 
encouragement will be given for the successful candidates to gain overseas 
experience and become involved in general management Preference will be given to 
applicants with linguistic ability. Ref. 1 224/FT. 

Apply to RP. Carpenter, FCA, FCMA, AC1S, 2-5 Old Bond Street, London W1X 3TB. 
Tel. 01-493 0156. 




Selection Consultants 


F/X DEALERS 

Frankfurt Rotterdam 

Major International Bank 

Our Client is a prominent international bank with significant 
operations in all the major financial centres throughout the world. 

Current plans call for the further development of its dealing teams In 
Frankfurt by the recruitment of a No. 2 exchange trader, preferably late 
20's, and in Rotterdam by attracting a younger dealer probably with 
2 years experience in a major international bank. 

Both positions offer significant opportunities for personal 
development with a highly professional organisation, and the salary 
and benefits for each will amply reflect the calibre and performance 
required by the bank. 

Contact Norman Philpot in confidence 
on 01-24S 3812 


NPA Internationa] Recruitment 


60 Cheap si de- London £C2 -Telephone 01-2LS 3812/3/4/5 


INTERNATIONAL 

APPOINTMENTS 

Appear every 
■Thursday 


Rate £29.00 


Per Single Column 


Centimetre 


MANAGEMENT 

ACCOUNTANTS 

SAUDI ARABIA 

Our associates in Saudi Arabia, a Rroup oE hinbly respected major 
construction and maintenance contractor:, \7itn a large diversity Of 
interests in. the Middle East, urgently require professionally qualified 
accountants for their precast lac Lories in Skudi Arabia. 

The main responsibilities will be tbe preps rat inn of monthly 
management accounts and asr-isling in tbe preparation of annual 
accounts, budgem and forecasts. The successful candidates will also 
assist in the development ot management information systems and 
other related activities of this major group of com pa ales. 

Suitable candidates must have in-depth experience with a major 
construction and'nr commercial enterprise combined with a strong- 
background of compu terieOd account mg methods. The ability to speak 
Arabic would he a major asset. Thu prime need is for professional 
accountants with enthusiasm, dnvc, man -management ability and the 
&k til lc cum m u mca te cl lecii vd> . Experience olfactory type accounting 
would be n n udvanucc, 

An excel lent contract package Kill be negotiable wflfe top line 
candidates including lice accommodation and ser^ces. bone 5 scncTne. 
UK leaves etc. II you meet our demanding requirements. PLEASE 
TELEPHONE IMMEDIATELY 01-403 3222 AS INTERVIEW'S 
WILL TAKE PLACE FROM IQthMAY. 

A. J. White 

Recruitment Manager, 

KAL Enterprise (UK5 limited . >\. 

40 Upper Brook Street . ^ 5T""fr iiT-™ 




BAHRAIN 


Competitive Salary 
Furnished Flat 
& Benefits— Tax Free. 


HEAD OF FINANCIAL OPERATIONS 

The Housing Bank, an institution responsible for providing 
financing and loans in support of Bahrain’s national housing 
programme, intends to recruit a Head of . Financial 
Operations. This post provides a substantial professional 
challenge and will enable the successful candidate and 
his family to enjoy the benefits of a pleasant environment 
within a strong financial community. 

This is a permanent appointment, initially for a period 
of 2 years and then extendable upon mutual agreement. 

Applicants shoufd be holders of a University degree, 
qualified accountants (AC A or ACM A} and be aged 
between 30 and 40. Preference will be given to second 
degree holders who can demonstrate substantial manage- 
ment experience In a similar organisation. 

Applications, providing ell necessary information end a 
current photograph should now be sent to:— 

The Deputy Chairman, 

The Housing Bank, 

P.O. Box 5370, 

Manama, 

- - -Bahrain. . . . 

THE GULF. 




(Arabic Mother Tongue) 

Applicants will find excellent atmosphere, and an 
Interesting, responsible job. They should have: 

• Age between 27 and 35 and at least 5 years 
banking experience, particularly in Documentary 
Credits 

• Organisational ability and some experience of 
personnel management 

• Fluent English, both written and spoken 

You are invited to send written details to: 

DAR AL-MAAL AL-1SLAMI 

Ret: A8 P.O. Box 696 . 

1211 GENEVA 1 - Switzerland I 

Strict izonfidentiality assured '0^ 


INTERNATIONAL CONSORTIUM BANK 

Is seeking an 

ECONOMIST 

for its PARIS economic and finance studies department 


—Minimum 2/3 years experience rn international economy 
analysis. 

— Perfect command of English and very good -knowledge of 
French requested. 

The candidate wjIJ he . capable of working in a team with a 
small group. 

Send handwritten letter 4- -C.V. under ref, 8658 to: 

P. UCHAU SA, BJV22&, 75043 PARK CEO EX 02 
who will forward. 










i3 19, 


<8^ 

"it 'Wj 

';S1i 

"I 


'i'JljV \..y- 


-:~* •* 


' ;t H-5 
s 


;-Tn F,.> 


T ifi’i? 

* - -> . o 


Financial Times Thursday May 13 10S2 


6.40-7.5ST am Open Univmitj’ 
'(Ultra High Frequency only). 
&.D5-11.50 For Schools, Colleges. 

12.30 pm News After Noon. 1.00 
Pebble Mill at One. 1.43 Chocfc-a- 
Block. . 2.00 You and Me. 2.13- 

3.00 For Schools, Colleges, 3.53 
Regional News fcr England 
(except London). £55 Play 
School. 4L20 The Drag Pack. 

4.40 The Liltliest Hobo. 5.05 
John Craven’s News round. 5.19 
Blue. Peter. 

5.40 News. 

6.00 Regional News Magazines. 
6.23 Nationwide. 

7.00 Tomorrow's World: The 
latest news from the 
world of science and 

technology. 

7J3S Top of the Pops with Dave 
Lee Travis. 

8.00 It Ain't Half Hot Mum 
starring Windsor Davies. 

8.30 Sorry! (comedy series 
starring Ronnie Corbett). 
».W) News. 

9.25 Bird of Prey. 

10.15 Question Time with 
Ludovic Kennedy. 

ZZ.18 News Headlines. . 

11.20 Fame: A series of five 

programmes (Barbara 
Windsor). 


All IB A Regions as London 
except at the following limes: — 

ANGLIA 

1.20 pm Argiia Nows. ZOO Nrt fo- 
Women Only 3.45 Never Re T»?:.i 
6-00 About Anglia. 6.20 Arana. C35 
Crossroads. 700 Survival. 1045 
Snooker 82: " TcKy’s Or.ginaf Cla?; : ■* 
11-30 Lou Gran:. 12.2S am Lexers {tom 
Rome. 

BORDER 

1.20 pm Beider Nows 3 45 Nave* 
H'n Tv* j n. 5.15 Un-vers-:y C^ai.omjo. 

6.00 Loafco.-ound Titursdav. G.35 C'-rss- 

raadi. 7.00 E-nmardaii) F.|*m 10.45 

Pro-Ccujbr,ry Sroaker. 11 .30 B.ur:e. 

12.00 Bordor Naws Surur.ar,. 

CENTRAL 

12.30 pm Tt.e Young Dorian 1 30 
Central New: 3.4S Nevo, the Tui.i 
5.15 Ar-^ur c Carfcc's Myj-.er :l: 
Wnne. 6 00 Cmssroam B.2S Cc-:n! 

News. 7.00 Ernmctdaic Farm. 10.45 

Venture. 11-30 Central News 11.33 

Thr.rtor: " Screamer." 

CHANNEL 

1.20 pm Channel LuneArma News. 
Whai’s On Where end Wcatttor 3 45 
Never rho Twain. 5.20 C'essrosos 

6.00 Chennai Report. 6.15 Tna 


6.40*7.55 am Open University. 

11.00 Play School. 

11.25 Snnnfer. 

5.10 pm The Weisses hof Sied- 
lung 3327. 

+5-40 Burk Rogers. 

6 00 The Cre.il Egg Race. 

6*30 Sony Mote, Z Didn't See 

You. 


lienee fc'e Hu'l. 7.00 T-« Erup-.iCh of 

Vovrt 3: Helen s 10.43 C annoJ Lars 

jni to. so M 0 nn*. 

1145 .a C-enia.-: -.A- t- ?r. r fir-win »J 
1 00 am r«:v.3 >i <■ ' '.Vaj - .,*. French. 

GRAMPIAN 

9 25 am First Thm^. i.ao North 
Nows. 3.45 Mover Si« 7.*.*j:r 6.00 North 
Ton-gHS. 6.3) Puiicc New*. G 35 Ciose- 
ro.id s. 7.00 Pr.'uaio Con.air.in. 10.45 
Cover *.o Caver. 11.15 S-surm 11.48 
love American Style. 1215 am North 
Hfcjiifines. 

GRANADA 

■ 1 20 pm C.'jr.j'.'a n .;pc*rn. 1.30 
E-:-:rv . c .v,s. 1 £5 C-; Cat.:! 

3 45 Newer r.c “wj . b.DO Tr , ,9 
t • 1r G 05 G 30 

ii*jr,idr Rett*:'.. 7.03 trnioTsciij 

Fj-m 10.4S C-ift a 11 15 -.Vu: Mr 

"ipei-. r.ir. 11 -35 T -(* C..-I: yorH 

Cue. 12.15 am L::b N-i‘i! 

('Mi 7lV.. 

HTV 

1.20 pm HTV News. 3 45 hicver :no 
Twi n 5.15 Hcr-s-ar.. 6 00 HTV Now;. 
6.25 Crerej'Oei.a. 7.00 Emtrjri* F.»,m. 
10.43 HTV Kerrs. 10 45 Lou Grorrt 
11.45 Y/hot The Papers Say. 12.00 
Supeisur Pfor.'e. 

HTV Cymru/Wsries — As HTV West 
except: 935-9.50 am Wales and the 


6.55 Snooker. 

7.35 News Summary. 

7.40 Travellers in Time. 

8.U) Human Brain. 

9.00 Call My Bluff. 

8.2» Brass Tacks Report, 
10.10 Snooker. 

10.45 New.snight. 
UJW-12.13 am Snooker. 


Snn. 11.22-11.37 Yn Eu Cynofin. 
12 00-1210 pm r.A<i(ar Clef. 6.00 
Y 3 y dil ft. 15-6.35 Rope re Whirs. 
10.45 £paru Arena. 11.15*12.15 am Lou 
Grant. 

SCOTTISH 

1.30 pm Srottich News 3.45 Never 
the Twa.n. 5.15 Teut.mo Tulaa. 5.20 
Crossroads. G.00 Scotliinri Today 
Inllaviod by Bodylme. 6.30 Benson 

7.00 EmmcHele F nrm. 10.45 Seal upon 
0u>? 11.15 Maybe Tomorrow. 11 45 

Ce.chd laitncdii. 12.20 Barney Miiior. 


1.20 pm TSW Nmiri H”jdimar. 3.45 
Mover pin Twtm. 5.15 Hus Hnnnvbnn'5 

y.tu; E'r-h.-l.yr. 5.20 6.00 

Tndc/ Routli-V/ns: G.30 Scone Sottilt* 
Wmi Spei *i 7 00 Bnnion 10 47 
T j : .V Ute New*. 10.50 11.45 

In Concert 1.00 am Postscript. 1.10 
Strath -Wire; Weather. 


1.20 pm TVS Hu wc. 2.00 Not For 
Wr.fnitn Only. 3^5 Tho Cue) no Walt:. 

5.15 Watch Thu Space. 5.30 Coast 
To Cosit 6.00 Coast To Caust (con* 
t.nuod). 6.35 Crossroads. 7.00 Ernmor. 
data Farm. TO-45 In tho Mouth ol tha 



TELEVISION 


Chris Dunkley: Tonight's Choice 

Brass Tacks Reports, tlie current affairs extravaganza from 
BBC Manchester, which is to television rather less than what 
the News of the World is to Fleet Streei, returns to the air 
waves with a topic which is rifiht up its si reel: incest. The 
practice will, of course, be deplored, but, ns with the old suiter* 
press trick (“This photograph illustrates the disgraceful nature 
of Uiis matter, and here’s another, and another," etc,), you van 
expect plenty of juicy bits to back up the condemnation. 

Earlier. JBBC-2 proves tliat there's nothing new about sensa- 
tionalism with its 1921 travel film from the South Seas, shown 
in Travellers In Time. Frank Hurley, famous for his films of 
ShacIUeton's expeditions^ filmed srutc.-^ue masked witch-doctors 
and naked ** savages ” In Papua, and even stuffed human heads. 

But the best schedule is on Radio 4. starting at 7.20 with 
Kaleidoscope, which Tonight includes a review of the BBC-2 
series. ** The Human Brain." That’s followed by Five Years, 
an account of the crimcE and the enthusiasm (mostly for David 
Bowie; of a teenage gang- Then, after a prelude by Michael 
Oliver, cumes Beethoven’s Choral Symphony played by the 
Bavarian Radio Symphony Orchestra, with Helen Donath. Brigitte 
Fassbaender, Kenneth Riegel, and Hans Selin. 


LONDON I 


BUSINESS LAW 


9,3j am Schools Programmes. 

12.00 Gammon and Spinach. 12,10 
pra Get L'p and Gof 12J0 The 
Sullivans^ 14HI Nows, 1J20 
Thames News with Simon West- 
entt. 1*28 Crown Court. 2.00 
After Noon Flu*-;. 2.25 Racing 
from York. 3.45 Survival. 4.15 
Thames Ti^lcvision’s Junior 
Gymnast of the Year: Tho Grand 
Final from Wembley. 5.15 
JSmmerriale Farm. 

5.45 News. 

6.00 Thames News with 
Andrew Gardner and Rlu 
Carter. 

6L30 Thames Sport with Derek 
Thiinipson, Allan Taylor 
and Simon Reed. 

7.0U Never tho Twain: Donald , 
Sinden. Windsor Davies | 
and Honor Blackman in 
“Of Meissen Men." 

7.30 Spooner's Patch. 

8.00 Falcon Crest starring Jane 
Wyman. 

9 00 .Tanct and Company. 

9JO TV Eye. 

10.00 News. 

10.45 Hill Street Blues with 
Daniel J. Travanti, 

1L45 Ladies' Man. 

12.15 am WTiat ihe Papers Say. ' 

12.30 Sit Up and Lisles with ; 

Lady Ewart-Biggs. 
f Indlratrs programme in 

black and white I 


Draflan. 11.15 Slrumpat Cuy. 12.15 
dm Campany. 

TYNE TEES 

9-2S am Trui CoiH Wiirrf. 9.30 North* 
cant Newi 1.20 pm North-East Nows 
and Look around. 3.45 Novar inn Twain. 

4.15 TIib Lone Rancor 4.45 Junior 
Gymnast ol Ihn Year Grand Final iron 
Wcmbloy. 6.00 Nanh-Ejst News. 6.02 
Crossroads. 6.25 Northern Lite. 7.00 
Emmordale Farm 10.45 North-East 
Ntn}. 10.47 Job Slot Extra. 10.52 
Boat ol Thrco. 11.20 Coins In. 11.50 
B>z.>rri.- 12.20 >m John Paul II — Man 
ol CouraQO. 

ULSTER 

1.20 pm Lunrli'imn 3.45 Novor tho 
Twain. 4.13 Ulster Nnws G.15 Sounds 
ul . Sandy and Denck 5.30 Good 
Evening Uistci 6.00 Gocd Evening 
UlnfW. 6.25 Pol.cn S-r 6.35 Crcss- 
n »mia. 7.00 Emmcidnln Farm 10.44 
Ulster Wcathei 10.45 Opportunity 
Ulslut '62. 11.45 News nt Bcdtimn 

YORKSHIRE 

1.20 pm Calendar News 3.45 Never 
Ihn Twain. 4.15 Canaan Time. 4.20 
5 pen Billy. 4.45 Junior Gymnast of . 
tho Year. 6.00 Calendar (Emlcy Moor 
end Belmont editions) . 6 35 Cross* 

roods. 7.00 Emmerdalo Farm. 11.45 
Crown Green Bowling. 


Perils of U.S. asbestos litigation 


BY A. H. HERMANN, Legaf Correspondent 


ASBESTOS CLAIMS are the 
latest and fastest-moving 
product of the U.S. iitigation 
industry* They run into tens 
of thousands, necessitete the 
appointment of additional 
judges to deal with them, and 
represent a potential threat to 
viability of manufacturing and 
insurance companies alike. 

The legal issues generated by 
these claims are largely 
unresolved— or 10 be more 
exact, have been resolved 
differently by different appellate 
courts,. Last month the 
Supremo Court re-fused an appli- 
cation. supported by eight 
insurance companies, to review 
a judgment of the D.C. Circuit 
Court of Appeals*, and to say 
whether insurance coverage is 
triggered by exposure to 
asbestos fibres or by manifes- 
tation of disease, or whether the 
insurer's liability extends over 

ihe enure latency period from 

exposure to manifestation of the 
disease. The refusal of the 
Supreme C.turr ro renew rhe 
case leaves the lower courts 
free to go their own way, and 

manufacturers and insurance 
companies uncertain about their 
liabilities and claims. 

The problem which the 
Supreme Court refused to snlve 
is common to many claims 
concerning industrial diseases 
with a long latency period. 

OF the eighr insurance 
companies Involved in the 
Supreme Court application, 
seven contended that 'insurance 
coverage was triggered by 
exposure to asbestos. Commer- 
cial Union, the eighth company 
involved argued that insurance 
cover did not apply until an 
as best os- related disease mani- 
fested itself. 

All eight companies were 
unanimous that the decision of 
the D.C. Circuit Court of 
Appeal which held that cover- 
age applies through exposure 
to manifestation, should be 
reversed. The refusal of the 
Supreme Court meant that it 
was allowed to stand, for the 


time being at least. 

That decision represents a 
financial threat to industry and 
insurers of such a magnitude 
that it could be handled only 
with the assistance of public 
funds. Commercial Union 
estimates that, as a result, liabi- 
lity over the next 20 years con- 
nected urith deaths caused by 
previous exposure of former 


cuit which the Supreme Court 
refused to review. 

However, at about the same 
time, the Court or Appeal for 
the Fifth Circuit followed a dif- 
ferent solution, holding that 
liability was triggered by the 
period of exposure. The District 
Court for Massachusetts^ opted 
for the manifestation theory. It 
held that general rules of policy 


Following the ruling of one of the U.S. appeal 
courts, deaths caused by asbestos could, in the 
next 20 years, lead to claims totalling $38bn 


asbestos workers could amount 
to some S33bn. To this would 
have to be added claims for 
injuries that do nor result in 
deViti. and claims by others, for 
example, those using asbestos 
product?. The combined assets 

of ihc asbestos industry and of 

their insurers would, it is evi- 
dent. not be enough to meet 
such claim?. 

Ar issue in Insurance Com- 
pany of North America _ v 
TO'cne Corporation was the in- 
terpretation of a policy which 
attached liability to “ an acci- 
dent. including Injurious ex- 
posure Jo conditions, which re- 
sults. during the policy period, 
in bodily injury. . . 

The ca?" was decided on the 
basis of rhe exposure theory. 
Under this “bodilv injury” 
within i he policy would occur 
“ r»t nr near the fiTYt heaw in- 
halation of the fibres." Where 
more than one insurer was at 
risk during the period of rhe 
claimant's exposure, each in- 
surer would bear proportionate 
financial responsibility. In 
reaching this decision the Dis- 
trict Court was guided by a 
19S0 decision? of the Sixth Cir- 


eonstruction “dictate" that 
insurance coverage is triggered 
when rhe disease becomes diag- 

nosable. This solution vrould 
probably satisfy most insurers 

because It would limit their 
responsibility to cases covered 

by recent policies when the 
risks could already be antici- 
pated. 

However, choosing the third 
possibility, the DC Court of 
Appeals reversed the District 
Court and held that the 
insurer’s liability commenced, 
not only upon manifestation of 
the disease, but also upon and 
during "inhalation exposure and 
exposure in residence.” If there 
were several insurers on the 
risk at any time, from a 
claimant’s initial exposure to 
respirable asbestos to the time 
the disease became manifest, 
they were all responsible jointly 
and severally. The court also 
said that potentially applicable 
state laws do not differ from 
one another, and thus provided 
for a wide applicability of the 
precedent 

The decision has two other 
Interesting features; first the 
court accepted as the dominant 


purpose of the law the securing 
of prompt and equitable com- 'I 
pensation for claimants. The 
extensive interpretation . of ;; 
liability was further justified by T 
treating the contract as a 
contract of adhesion— as if * ; 
Keene was the weaker party— ■■ 
and by taking into account only 
the “reasonable expectations 
of Keene.*’ The court went so 
far as to say that insurers were » 
liable to Keene even during the 
period its insurance may have 
lapsed. To consolidate this . S 
victory Keene brought another 
action asking for a declaration 
that five insurance companies : 1 
were bound by this decision and ■ 
would have to reimburse it 
with all monies which Keene 
would become obliged to pay as 
a result of some 10,000 
asbestos law suits against it. 

Not only insurers but also 

insurance brokers have cause -to 
be worried. .lohns-Manville 
Corp. is suing Marsh & 

McLennan, its broker for t-he 

past 2S years, seeking 8700m 
in exemplary dama?es, as well 
as compensatory damages. The 

plaintiff alleges that from 1044 

onwards the broker undertook 
to obtain each year compre- 
hensive general liability and 
workers’ compensation insur- 
ance as part of a co-ordinated 
overall insurance package. ■ 
Johns-Manville is now involved . 
in a dispute with its insurers 
and complains that the broker 
does not co-operate. He says that . 
whether the company does not 
obtain coverage because of this 
lack of co-operation or because 
the coverage was not agreed in 
the first instance, it wili always 
be the broker's fault and 
responsibility. 

The tale goes on and on. It 
seems better not to have 
anything to do with asbestos. t 
* Keeno Corporation v Insurance Com- 
pany or North America. Asbestos Liti- 
gation Reporter, pp 4214 and 43B3 
(Andrews Publications. Edgetnont, 
Penn./ 

t 633 F.2d 1212. 

t No 78-27S3-Z (August 14 1361 Js 


(S) Sureo phonic broadcast (whan 
broadcast on VHF) 

RADIO 1 

5.00 am As Radio 2. 7.00 Miko Read 

9.00 Simon Bates. 11.30 Dcvc Lee 
Travis. 2-00 pm Sieve Wright 4 30 
Peter Powell. 7.00 Wallers Wceki}. 

8.00 David Jensen. 10.00*12.00 John 
Peel (S). 

RADIO 2 

5.00 am Ray Mooro (S). 7 JO Terry 
Wogan (S). 10.00 Cliff M.chalmare 

(Sj. 12.00 Gloria Hunmlard (S). 2-00 
Ed Stewart (S) Including Racing |rqm 
York at 3.00. 3.30 and 4 00. 4.00 Dav,d 
Hamilton (5). 5.45 News. Span. 5.00 
John Dunn fS). 8X0 Country Club 
with Wally Whyran (S). 9.00 Alan Doll 
with the Big Band Sound (Sj. 9.55 
Sports Desk. 10.00 Tha News Hudd* 
lines. 10.30 Siar Sound Ex-are. 11.00 


RADIO 


Pctei Clsytan Round M. anight. 

1.C0 am Er.csre fSJ. 2.00-5.00 You and 
me Night and the Music !SJ. 

RADIO 3 

6 55 am Weather 7.00 Nows. 7.05 
Mornmg Concert i£-J, 8 00 News. 8.05 
Morning Consort ■ continued). 9.00 
News. 9.05 This Week s Composer: 
Edvard Grieg (Si. lOdtt Gewandhaua 
V/Td Quintet of Lcipzi-i (SJ. 10.30 
Sceoaabcfg String Quartet No. 1 Op. 7 
pi*. 11. IS BoumcmouTn Symphony 
Ore ha st re (Si. 1.00 pm Nows. 1.08 
Bristol Lunchtime Concert (S). 2.00 

L u.m Miller." type tragedy In thru* 
acts by Verdi (sung in Italian) (French 
Radio recording) (Sj. 4JS Paganini 


chamber music (S). 4.55 News. 5.00 
Mdmly For Pleasure (S). 7.00 The 

English Concert (Sj. 8.00 Orll nnd 
Ponde/ocki ccmcari (S). 8J0 “ Bael." 
Play by Dautd Pawn all, with The Pumcs 
Plough Company (S) 10.00 Music in 

Our Time (5). 11.00 News. 11.05- 

11.15 Berlioz (S) 

RADIO 4 

6.00 am News Briefing. 6.10 Farming 
Today. 6.25 Shipping Ferscast. 6,30 
Today. 6-33 Yesterday In Parliament. 
8.57 Weather, travel. 9.00 News. 9.08 
Chockpomt. 9.30 The Living World*. 

10.00 Nawa. 10.02 At ft Happens. 

10.30 Daily Service. 10.46 Morning 
Story. 11.00 Nftwra,- travel. 11.03 


Schools Debating Competition. 11,48 
Enquire Within. 12.00 Nows. 12.02 pm 
You end Yours. 12.27 Brain of Britain 
1362 (S). 12.55 Weather, travel, pro- 
gramme news. 1.00 The World at One. 
1.40 Thn Archers. 1.55 Shipping Fore- 
cast. 2.00 Nows. 2.02 Woman's Hour. 

3.00 Naws. 3.02 Afternoon Theatre (St. 

4.00 Nows. 4.02 Ndomi Muchison. 4.10 
Bneksholf. 4.40 Story Time 5.00 rid: 
News Magazine. 5.50 Shipping Fore- 
cast. 5.55 Woaihsr, programme news. 

6.00 News, including Financial Report, 

6.30 Any Answers? 6.45 It's a Bargain. 

7.00 Nown. 7.05 The Archers. 7.20 
Kalaidoscope. 7-55 Five Years. 8.25 
Concert Prelude (S). 835 Beethoven's 
'•Choral” Symphony (S). 9.69 Weather. 

10.00 Tho World Tonight. 114)0 A Book 
at Bedtime. 11.16 The Financial World ■ 
Tonight. 11.30 Today in Parliament. 

12.00 Now*. 


RACING 

BY DOMINIC WIGAN 


ARDROSS proved just fast 
enough to peg back Glint Of 
Gold in Newmarket's Jockey 
Club Stakes last month and 
there is every reason to expect 
him to win more easily over 
tile additional two furlongs of 
today's Yorkshire Cup. 

The three-length conqueror 
of Centreline's brother, 
Nicholas Rill, in this race last 
year, when making his first 


appearance in the Black and 
White chevrons of Mr Charles 
St George. Ardross went on to 
win the other major cup races. 
He then returned to 1« miles 
to finish a highly ireditable 
sixth from a poor draw In the 
Prix de l'Arc de Triomphe at 
Longchamp. where a slower 
than usual early pace also 
failed to help his cause. 

Sent back to France three 
weeks later for a more search- 
ing test of stamina in the one 
mile 7J furlongs Prlx Royal 
Oak, Ardross found no difficulty 
in turning the tables over the 
“Arc" winner Gold River. 


Even if the early pace is 
slower than might be expected 
with stable-mates. Little Wolf 
and Capstan in the field, 
Ardross’s overall form is such 
that anything but another 
victory will come as a surprise. 

Jeremy Hindley has with- 
drawn Larla from the Norwest 
Holst Trophy in order to 50 for 
the furlong shorter Freshnelds 
Holidays Sprint. Backers will 
do well to consider the filly. A 
promising two-year-old, who 
finished out of the frame on 
each of her three appearances, 
Larla has made significant pro- 
gress of late, and looks quite 


capable of giving another 
boost to her premising sire. 
He Loves Me. 

Returning to the Norwest 
event, Mou-Femi-Tychi ■ will 
find no better opportunity of 
gening off the mark. At today’s 
weight he has nothing to fear 
from his recent Epsom con- 
queror, Gavo. 

YORK 

2.30 — -Larla 

3.00— Ardross* 

3.30— Mou-Femi-Tychi*** 

4.00— Maltaboy** 




BncroJt 


If you’re traveffing an business, Braniffis goingyoar 
•way. To more of the places that yon conduct important - 
bnsiness in the Southwest U.SJL and Mexico. 

flnH only Eraniff can give von aB the comfort and ser- 
nf rwrrriomy 747 iets to DaBas/Fort Worth- ’With 
i weekly non-stops now and daily be^nning in Jnne. 

TDallas/Fort Worth Braniff flies you nonrstop to 
Houston, Los Angeles, Mexico City andmany other 
BranifE cities- 

BnLbestof^ymicangoonyoiirwTOmtheK© i 

savings of our TEXAS CLASS— With soft, ; 


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date your business. Or come sit in WORLD 
and ergoy our elegant 7-ccrarse meals which include caviar 
and cfwice of entrees such as Chateaubriand -witii sauce 
madeira carved at your seat, F3et Sole Veronrque, 
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enjoy movies, stereo and complimentary drinks. 

Yooll fbd that when you fly Branift you’ll arrive at 
your destination relaxed and ready to fece the business 
at hand. So next time youmean business, remetubec 
Braniff is going your vrayl 


TEXAS CLASS 

FARE ARRIVE 


LEAVE LONDON GATVrtCKIISOAJA. 

TEXAS CLASS TEXAS CLASS TEXAS CLASS 

asoove FARE ARRIVE FARE ARRIVE RARE 

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SSSnjn^SPJL M46 LAS VEGAS 5.-00PAL £253 REN0fc36RM. £853 

m2 L0SANGEI£S535P.H. sm snwnmaM»._. £243 

ms MEXICO CITV7:10RM. £436* SEATTLE/TACOMA 7:35P.M. ...... £866 

£M5 MIDLAND/ODESSA 935 iRM. £246 JWSAjaWRM. £M5 

HABTJNGENT50EM. M-u-ManM £856 JffiW ORLEANS Sc4SPAt •>*•<»••• £S4S WICHITA 5&&PJL ............... £R35 

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AUVE AND KICKING 
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Financial Times Thursday' May IB 1982 


THE MANAGEMENT PAGE: Marketing 


advertis i ng How Teutonic 

‘Censorship’ resisted tracks lifted 


EDITED BY CHRISTOPHER LORENZ 


ROGER UNDERHILL, director 
general of the Advertising 
Association, yesterday voiced 
the concern of many in the 
advertising industry when be 
hit out sharply at the “ najjjjy- 
ing” pressures on the industry 
to cut back tobacco and alcohol 
advertising. 

Underhill, speaking at the 
publication of the Association's 
annual report, warned that the 
pressures on the industry to 
curb certain types of advertising 
were increasing. “ The danger, 
of course, is that we could move 
from reasonable balanced con- 
trol of advertising to unneces- 
sary censorship." he claimed. 

"It cannot be said too often 
that part of the freedom of 
speech is the right of com- 
mercial communication within 
the bounds of law and self- 
regulation." 

Underhill believes that the 
pressures on the industry are 
not Just comm? from obvious 
areas such as the anti-smoking 
and drink lobby. Rather, 
advertising is on the receiving 
end of criticism in areas where 
its relevance is marginal. 

However, it is the attacks on 


tobacco and alcohol advertising 
which is of most immediate con- 
cern to the association. Its 
report spells out some erf the 
detailed steps taken over the 
past year to help combat these 
pressures. 

It developed a strategy, which 
was co-ordinated by separate 
groups drawn from the advertis- 
ing industry and had several 
elements. 

One approach was the publica- 
tion of various monographs 
explaining the industry's 
analysis that overall consump- 
tion was not affected by 
advertising. 

Another approach was to 
lobby MPs extensively both at 
Westminster and Brussels and 
to extend contacts with Govern- 
ment departments and quangos. 

The report reveals, however, 
that plans for full-scale media 
advertising campaigns aimed at 
spelling out the association’s 
position, were not in the end 
carried out Creative approaches 
for the campaigns had been 
devised by the Allen, Brady 
and Marsh and R- H. Kirkwood 
agencies. 

Apart from its defensive 


lobbying tactics, the association 
also plans this year to take more 
positive steps to promote the 
value of advertising in a com- 
petitive economy. 

“Business people have long 
paid lip service to the principle 
of competition," points out Sir 
Alex Jarratt, president of the 
association, "but now that the 
harshness of reality is being 
felt, we may not like it so 
much," 

Sir Alex argues that the value 
of advertising in sharpening 
competition “should be properly 
understood before the country 
comes to make some important 
political decisions within the 
next couple of years.” 

As part of the association’s 
programme to promote better 
understanding of the role of 
advertising, it is intended that 
fringe . meetings will be held at 
a ft the major parly conferences 
this autumn. “ Our central 
theme will be the beneficial 
effect of advertising on prices,” 
says Underhill. “Implicit in 
this is that lower prices can only 
be achieved through competi- 
tion.” 


tracks lifted 
off in the U K 


lit 




$4% -ju; 

WM 


BY CHRISTIAN TYLER 


In brief . . . 


CAMPAIGNS. Cola-Cola this 
week started its biggest ever 
advertising campaign in the 
UK with a renewed emphasis 
on the “ real thing ” approach 
which proved popular in the 
early 1970s. The new cam- 
paign is part of the fierce 


marketing war now going on 
between Coca-Cola — the dear 
market leader— and the chal- 
lenge from its main rival, 
Pepsi-Cola. 

Colt Cars has moved its 
£800,000 advertising account 
from Smee's Advertising to 
Everett’s. The move follows 
a major review of Colt’s 
marketing strategy which is 


Two pictures of the present state of the international 
agency market are revealed this week in new com- 
parisons compiled by separate sources. 


TOP TEN UK AGENCY 
SPENDERS OVERSEAS 1981 


1. Ted Bates 5J 

Z JWT 10 

3. Young & Rubicam 1.8 

4. Foote Cone & Belding 1 A 

5. McCann-Erickson 1.4 

6. Albany International 1.0 

7. Media Business 1.0 

8. Charles Barker CBC 0.9 

9. Marstelier 0.9 

10. D’Arcy-MacManus & Masiui 05 

Source; Romo Research 


TOP TEN LARGEST AGENCIES 
WORLD-WIDE 1981 

Billings 

Sbn 

1. Dentsu 3D 

2. Young & Rubicam 24 

1 JWT 12 

4. Ogfivy & Mather I Jf 

5. McCann-Erickson 1.9 

6. Ted Bates 14 

7. BBDO International 1 A 

8. Leo Burnett 1 J 

9. SSC & B 1 J. 

10k Foote Cone & Belding 1.2 


Some S30.9m wee in veiled by UK 
agencies in international medio in 19B1. 
a grovrth of T< par cant over 7980. The 
UK ranks second in the world behind 
the U.S (with 538.9ml in spending on 
international madia, with Japan third 
with 525.2m. 


Source: Advertising Ago 


The survey covered 871 agencies in 72 
countries and revealed that world 
billings totalled 51 4 Sbn. Much of the 
surge came from Latin America and 
Asia . 


leading to a new up-market 
approach. 

A new campaign for the 
DER television rental chain 
broke on television this -week, 
the first TV commercials for 
the company since 1977. The 
campaign is being handled by 
die Allen, Brady and Marsh 
agency which won the account 
earlier this year. DER plans 
to spend some Sm on 
advertising this year through 
ABM. 

ABM flits week also 
launched a new campaign for 
the Provincial Bull ding 
Society. Tony Dexter, 
advertising manager at 
Provincial, says that the 
campaign strategy “is to use 
television to establish the 
corporate philosophy while 
press will be used tactically.** 
O 

EUROPE: Hie Institute - of 
Practitioners in Advertising 
has just added several new 
members to its Advertising 
Controls Group, aimed at 
fighting threats to the 
industry emanating from 
Brussels. The new members 
include Mike English, a 
former president of the IPA, 
Bert de Vos of Masius, and 
Geoffrey Dempsey of Doyle 
Dane Bembach. 

David Churchill 


WEST GERMAN brewers have 
been learning how to poke fun 
at themselves in order to pro- 
mote their lager in Britain. 
Their television commercials 
reek of lederhosen, Tyrolean 
hats and guttural Bavarian 
accents. But it is odd to find 
a sober and thrifty engineering 
company — albeit German — 
doing the same thing. 

Over the past four months a 
medium-sized Hamburg manu- 
facturer of industrial trucks has 
spent £70,000 on a series of 
cartoon advertisements designed 
to take the sting out of its 
foreignness. The ads feature 
a forklift truck that has run 
amok. The factory manager 
yells to his secretary: “That 
does it! Send for Jimgheinrich " 
and she replies: “ Young who? ” 

Jungheinricb has been selling 
its electric trucks in the UK for 
14 years, painstakingly and not 
always profitably building up a 
claimed 9-10 per cent of a com- 
petitive (and now badly 
depressed! market 

The company has always had 
problems with its name (it 
sounds threatening, says the UK 
director) but this is the first 
time it has felt rich enough to 
spend money on countering 
that difficulty. Jungheinrich's 
national advertising is not just 
promotion: it i6 a sign that the 
company feels it has arrived. 

Arriving was not easy. The 
parent company calculated from 
the start that the British market 
would be bard to crack: indeed, 
the UK was the ninth European 
countiy on Jungheinrich’s list 
For the first five years the 
British operation made no profit 
as its high-priced products 
struggled against a 17 per cent 
import duty and sterling 
devaluations. 

When Britain joined the EEC. 
however, the duty barrier was 
phased out Then domestic 
manufacturers were caught out 
by one of the swings in orders 
to which the business is particu- 
larly prone. As demand out- 
stripped domestic supply impor- 
ters began filling the gap. 

Today the boot is on the 
other foot. It is actually cheaper 
to build electric trucks in West 
Germany than in the UK and 
Importers as a whole have taken 
nearly 50 per cant of the market 


—in the late 1970s even 20 per 
cent import penetration would 
have been counted a disaster. 

British . manufacturers put 
the blame for this state of 
affairs squarely on the sterling/ 
Deutsche Mark exchange rate 
which, they say, at around 
DM 4.20 overvalues the pound 
by at least a third. 

At the outset, Jungheinricb 
decided that an independent 
distributorship was not the way 
to tackle the difficult UK 
market because dealers could 
not be trusted to carry enough 
stock when times got hard. 
Instead it started in primitive 
quarters in a Manchester back 
street employing only three 
service engineers. It worked 
hard on its service network 
which now has centres in 
London, Sheffield, Birmingham 
and Scotland, employing around 
120 people in the field. Turn- 
over in the UK was £10m in 
1980, compared with the group’s 
£155m total for that year, of 
which 60 per cent is export 
sales. 


wj/Wm t m-. w - w ' m 

m .. v . & ^4 m 

K ' Zl . : / IIP ■ • I:..:. 

■m ' / t- **&■■■ :s ■ • . • wmmi 




To crack the British industrial 
truck market jungheinrich's Bob 
Bischof has played down the 
company’s German nationality; 
the company has also been able 
to capitalise on the very favour- 
able swing in exchange rates in 
recant years 


March 7973 *1-0 


Enthusiasm 



“There is no great secret 
formula,” says Bob Biscbof, 
joint managing director of the 
British operation, who came 
over from Germany at the age 
of 26 when the company was 
launched: “ We just put in a lot 
of hard work and enthusiasm." 

The anglophile Biscbof has 
tried to avoid Teutonic severity 
in the company’s managerial 
style. “ We don't adopt the over- 
organised way of doing tilings 
that the Germans have; nor do 
we rely entirely on the British 
flair for improvisation. In 
Germany, if things don’t follow 
a pattern, panic breaks out We 
have found a way of combining 
the two systems.” 

. But cultural camouflage does 
not by itself sell foreign fork 
lift trucks. According to Bischof, 
tile rough times that British 
companies in this- field have 
been through— with the excep- 
tion of the market leader Lans- 
ing Bags all — have greatly 
helped the importers. Manage- 
ment of British companies has 
been weak he claims. Companies 
have. “ aged.” or— like Coventry 
Climax— have been constantly 
ud for sale. Mergers or acquisi- 
tions. urged on the domestic 
industry by bodies like the 
v e*ional Economic Development 
Cni'rcil have been a mistake. 
"Smeller "fits can perform 
j. 0 -, »!•.., ..-hole.” he says. 

But Jungheinrich owes' a 
great deal to luck too. About 
five years ago the parent com- 
pany considered acquiring a 
British manufacturer or setting 
up its own plant in the UK. If 
it had done so, it would now be 
paying the exchange rate 
penalty that is so hurting 
British manufacturers, and 
would almost certainly be in 
serious trouble. 

Instead of buying or manu- 
facturing in Britain, Junghein- 
rich went to France (“ by 
chance” says. Bischof), ■Where 
it now enjoys another exchange 
rate Mv^ntaw. It bought a 
company called MIC, at 
Ar-er-tsp in Normandy, which 


turns out the bulk of the hand- 
operated pallet trucks that are 
one of the company’s biggest 
sellers. 

Meanwhile. Lanstog Bagnall 
has problems, measurable by 
the fact that its electric truck 
division at Basingstoke, Hamp- 
shire. is working at only 40 per 
cent of capacity. Lansing agrees 
with Bischof that there is no 
secret to the importers' success: 
the answer lies in the exchange 
rate. 

To offset the difference In the 
two countries’ inflation rates 
the pound should be at DM 3 or 
DM 3.50, not DM 4.20, say Lan- 
sing’s directors. It is a message 
they have taken personally to 
Mrs Thatcher and Cabinet 
Ministers. 

“There Is no other reason," 
says John AHenby, Lansing's 
managing director in charge of 
production. “It’s not specifica- 
tion or delivery. It's certainly 
not servicing. We have com- 
peted successfully with our 
foreign competitors hi their own 
markets and here for 25 years 
— though the Japanese are an- 
other question." 

With their ability to carry 
stock and pour in machines 
whatever the state of Che mar- 
ket. the Japanese may now have 
about 20 per cent of the UK 
business, perhaps more in some 
lines of engine-powered trucks. 

As Jungheinrich is in the UK, 
so Lansing is in Germany. It 
has been expanding the model 
range in its West German manu- 
facturing subsidiary at Roxheiih, 
near Frankfurt, which in terms 
of employees and sales is 
slightly larger than Junghein- 
rich’s UK sales and service 
organisation. Indeed, at present 
it probably pays Lansing to 
re-import trucks from its Ger- 
man factory. But because much 
of the work is sent out from 
the UK, Lansing is 'having to 
fight hard just to hold onto its 



^ Rev 


78 79 W W 


Note: Real anhango rate 

“ affective •» ch&nga rate adjusted tor differential rata of Inflation 

domestic inflation 

— trade weighted exchange rata s — 

trade weighted overseas Inflation 
Inflation indict a are based on wholesale industrial /manufacturing prices. 


market share across the 
Channel. At home a fierce cost- 
cutting campaign has been 
mounted in the past two years, 
and a third of the 6,000 UK 
employees have lost their jobs. 


Eroded 


One of tiie big worries for 
Lansing — and for many other 
major British engineering com- 
panies without Government con- 
tracts to support them — . is 
that capacity is being so eroded 
during the recession that 
recovery, when it comes, will 
leave them even more vulner- 
able to the competition. • 

The squeeze has not made 
the British company xenophobic. 
Its advertising relies mainly on 
claims of quality and superior 
engineering to overcome the 
21 to 5 per cent price disadvan- 
tage it suffers against Junghein- 
rich. It does, however, use the 
discreet catchphrase “ British 
built by British industry" in 
the corner of its promotion 
material. 

Nor does it find much evi- 
dence of xenophobia in West 
Germany (except against the 
Japanese), although Volks- 
wagen is said to be difficult 
to sell to and another major 


company has proved downright 
anti-British. But pitciting most 
of its effort at the big manu- 
facturers (and specialised indus- 
tries like cold storage) it can 
count Opel, Bosch and Siemens 
among its customers in the 
demanding automotive market. 
With the right exchange' rate 
— and Lansing thinks a move 
towards that may be beginning 
— it would expect to double^ its 
best year's sales figure in West 
Germany. 

If selling industrial trucks is 
a cut-throat business — and it's 
the British throat that is look- 
ing most vulnerable at. the 
moment — it has its gentle- 
manly side too. " It sometimes 
looks as if we are fighting each 
other to death in each other's 
back garden,' 1 ' says Bischof. As 
long as ffie total mJuitet is 
static, no one is benefiting. At ■ 
the same time the Japanese are 
getting to tho - Third World*' 
countries. All we are doinc 
really in Europe at the moment ■ 
is creating each other's unem- ! 
ployment" 


That does not mean Jung- 
heinrich (G.B.) plans to ease 
up. Apart from anything else, 
there are all those importer? 
breathing down its neck .... 


BILache/es good results in 1981 


Banque Internationale a Luxembourg, Luxem- 
bourg’s oldest and largest private commercial 
bank, recorded good results in 1981, the Bank’s 
125th year of activity. Total assets rose by 33.1% 
to Lfrs. 176 billion. 

A substancial increase in non-bank customer 
deposits accounted' for a significant proportion 
of this growth. 

Despite persistently narrow margins on the 
Euromarket and general economic uncertainty, 
the Bank’s cash flow, net profit and dividends 
continued their steady upward trend. As at 1st 
January 1982, BIL's own resources exceeded 
Lfrs. 3.79 billion, and will be increased consider- 
ably during 1982 in line with anticipated growth. 
BILexpanded total loan volume by 18% pursuing 
a cautious lending policy and successfully di- 
versifying its international loan portfolio, es- 
pecially to U. S. corporate borrowers and clients 
in Southeast Asia 

In 1981, BIL again strengthened its international 
business. The representative offices in NewMirk 
and Singapore continued to expand their ac- 
tivities. In September, a representative office 
was opened in London concentrating on the 
Eurobond market BIL(Asia) Ltd^anew merchant 
bank in Singapore, will soon be operating. 

Headquartered in Luxembourg, which is rapidly 
developing its scope of international banking 
and finance capabilities, BIL offers compre- 
hensive services, through its own offices in key 
financial centers and worldwide through its ex- 
tensive correspondent relationships, including 
the network of ABECOR, the world's largest 
banking group of its kind 


Financial HighDghts 1979 


We are from 

South Wales from the valleys 
of the river Ta/T and the nver Ely. Wfe are 
used to working and we wont to work. 



- in L&s million - 

per 31.12. 81 -100 Lfrs -238 US $ 

NET PROFIT 

291 

320 

360 

Distributed profit 

125 

138 

159 

Net dividend 
per share 

Lfrs 195 

lira 215 

Lbs 225 

CASHFLOW*) 

621 

872 

1,152 

TOTAL ASSETS 

104,144 132(361 

176340 

Loans and advances 30,489 

35395 

41,792 

Due from banks 

56,791 

65384 104300 

Due to banks 

27,591 

30302 

40,768 

Customers' 

deposits 

65,740 

86,147 118,761 

Own resources inci. 97QR 
borrowed capital ^ y ° 

3,454 

3,604 


has given us the opportunity to work by 
budding fine new industrial estates near 
Pontypridd just North of Cardiff. 

The factory /warehouse units vary in 
size ... are amazing value, and we are just 
wanting to put our hearts into making 
businesses work. Making them work so 
we can work. The premises are there - 
we are here. Lets make Taff-EVy work. 


*) Ne* profit plus aflocslton Tor dapnxaattan and provisions alter deduction 
of the released portion of ihapmwiousyBaJS. 

Ihe rtanilaBd balaneaeheel and pnS and loss account aw published in Iks 
*W&ntxia)-Rocuaj! Special des Society si Associations du Grand-DucnA 
de Lufflmboufg: For your copy etf the Annua] Fteportfo Engteh, French or 
German pleesarantad our HeariOf^ in Lioambou®. 



soctete anonyme 
founded 1856 
Luxembourg, 
boulevard Royal 2 
Telephone: 4791-1 
Telex: 3626 biltu 


Lond^RepnasentafiveOffioe: 

5/S SL Andrew’s HHI, London EC4V 5 BY 
Telephone: (pi) 2488396/97, Telex: 886368 billdn g 




>. o 
S’- •. . 






For more information and a feet pack, please contact 
C.G. Prentice, Development Officer County Buildings, 
Fbntypridd CF37 2TU "Telephone: Pontypridd 40644 1 
FuH Government Development Area Grants available. 



Her Royal Highness 
The Princess Margaret 
Countess of Snowdon 


An Evening afBaSer 
■with 


Sadler’s Wells RoyalBalkt 
indoding - 

Ashton’s Balk: Tas de legumes’ 
ot aid ofSadle^sWdJs Theatre Appeal Fund 
Sadler’s Wells Theatre Thursday 20 May 730 

Suggested remittance per 

£13, 1,18 Dress Cir*E20UppepCini8S7,£5,£3 
Box Office 01 837 1672, ! 167i*3S56 Credit Card 61 2780871. *37 7505 
•Tfcaigmed Insutuaoe 

donation »tiw Sutler’s W 
















21 


THE ARTS 


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The Understanding j 

by MICHAEL COVENEY j 

■amtatafe ‘JUmuTi utfiSl 5 J ? 7 te t 0 " ** brWc 01 “*“*! R »chardson. with a sly ! 
housTSST^ir ££55 JtawacMtofc and singer inflect,™. Kale.! 

Park. An ununssummaieSuSle The ev * nin * may be a bore JJJ »Wmi junaer ( 

affair stretching over 40 years f 1 * 1 a half * but il 1<! certainly , 1 rpnwnd him or ; 

between Ralph Richardson and lMd out W|lh schematic M Greenwood) when ■ 

his wife's sister. The a fc ni M clarity. Richardson enters from ^°? nK ' . ,. 

intrusion of youth Wfc «LJ£ 6051 friend's funeral and Leonard lies down under the ! 

aphorisms. The old showing immediately establishes - an s ^ in . np -' . w,,b Ka, c, sns 
spunk afrer all, \ i ar£e firf C ,n bmaJe relationship with his SI^vf n . ted ,. . w ^ ,,e ‘ ^ elates i; 
place and drinks. Not vety much bla ? lopper ****** declaring. d 5 t ' J ' i l pd sw "« and per- ; 

in the way of actin'* ' Cn with a sudden spring in his forms ‘ simultaneously, a seduc- ! ! 

Angela Hiirh in u~ c , ***** that he is ready for ”a uvc ^ a ‘ ! ' hQe shuffle. Tins •' 

St‘ h v r first P !a >> bn of speed." So. not that: He Particular scene, brightly o\r 
*a**bM all the has inherited a spo™ eSr «*led by the delicious Syivesin. ! 
an oid?ash”n n l 4 0lJld , expect of °unnj» with rhe three sisters— f? ' r< ’uze , 1 JS in fact the show’s j 
West nie } lt \ “ the we have Margaret! a Sea it who , h *sh spot. The rest is a i-ala- ! 

Douelas hi of ^ lib am has trouble with her puddings losue of fluffs, bumps, awful ! 

Terenro S hw *v, touch of and eventually heaves off to d^ccUon by Roger Smith, i 
one orimn^iL^ 6, T t p Hme : ^nhne Anderson as the wrage design by Jenny Tim- j 
unlikelv i s ^ sour aR d djing wife; and Joan and a distinctly out <>! ; 

vearSd SITZH!? of - an IS Greenwood who has replaced soru performance by Richard- j 

^girieniSf th* S B r,^ Pe f0 5 r 5 e ?a l e CW» Johnson * a sort *»■ ! 

is fo 6 dutte^tr^H^h ° Vfa I d of , . bronchial. nrurasffiemc True, he looks incomparably ! 
mobiles She «rirrc ™ st * c fo^tion of Fenella Fielding— spruce in his small check suit. : 
birds and a snftlUv ”. e h . ave m daT « conducted m fed cardigan and yellow tie for i 
wa«ewS r \Sket er a S Daimler. the final moments; and there- 
with two larJr - ^T d ends Ah bm s P nn K. or youth, or m one vintage moment where : 

to the ceUir? FS 1 * sometft . m K approximate to both, he lenses to rock solid attention ! 

boyfriend whom wJ J5SE 1 e f L- in 1ne " r - 7 ' 1 * Girl Frid *y. on avowing h« wife’s discretiou I 

has left her Raflh RiShl h ?€e>> conib,n ” housework witii should she have ever found out * 

wife ha« h^r, - Rldl<,rdil0n s interior decoration. She offers about Avion. R\H ns Leonard ! 

2 Vh!, b ^,°„ d . Cad lr foiJr » d «si old Leonard’s library, grew younger bv the seem- | 

romanesque church ln 1 S Rrv« y 3 books haven’t been your correspondent aged alarm- ( 

rnanesque church in Brmany touched— propert^-for years." iogly by the minute. i 

Record Review 


Sadler’s Wells 


\ : :\1 

iSf'ff 


Twilight 


bv CLEMENT CRIS-P 




- V-t 




#1 




Tim Curry ai The Pirate King and Pamela Stephenson a: Mabel in the 
first photo call for M The Pirates of Penzance " which opens at the 
Theatre Royal Drury Lane on May 2£th with previews from May 17 


Music of the twentieth century 

by ANDREW CLEMENTS 

r~~ of fhp linearly conceived music The neglect 1« made ail thu with the 5o -year old Mnnzont is liiai such 


Bens Lulu Suite T ,u,w: > vonccivtra music me ne^ieci i« made all the wim the ouyear old Manzom is 

Lieder Tiinl ‘p.22- e- 2 “*® !usri0U5 - seducuve Mioori- more obvious m n nme when stiuhllv odd. Sim, poll’s atvoiiW 
Orchestra Mar«arrt phII v es J iS nL remarkaWe s!e,shr nf mast of his scions m ilu> of ihe CihititbiT Sviupinmv has 


Orr-hMira "**.“*• m unosr ot nis si^S'flons in Hie 

London Svmoho nv/rto^Hi* iV! nd ’ 3?L°*! ei V n ?. ^ ,,ndo a, ? d studio seems io be given over in tunsiderahle dynamism and is 

Abbado Deutsche rrammif tb* bune contain re-recording (some limes for ihe noi afraid of trank senium-m 

aS Grammo- playing of such unassailable rhlrd or fourth time l standard 

Honegger Svmnhonies Vns o beauty that the ear is momen- vvork-s for an already .wluraivd 


' The Sadler’s Wells section trf -Nip/ii for prepared piano (given Jookcd.at their, best in David 
iiie Rnyai Ballet opened a season a brilliantly idiomatic reading Bintley’s Meadoir of Proverbs, 

. } rZJWU in Rosebery Avenue on Tuesday by Hilary Bell). H an assemblage of black jokes, 

.. ,- Ktu -_ h . How ver>' different the preced- L-on v and sentiment which tells 

-’.'r rarnme h \vh^ 1 ce^t^e was in " Vtvau<!iire sexIet - don * w . ,th so clearly of its choreographer’s 
’ ■ - ", » ime the prettiest manners by Manon tireless sense of theatre and in- 

-Vr Tail and her four companions, ^tive movement, with Carl 

^ V • ■ ■ rtl ''iiLv fnr a Si 3nd wilh a,ld eJe “ aiK assur ' Mvers exceptional as an officer.’ 

141 J'Vj **** r A u!S ant,e by Roland Price. 1 would uo ' a ding and gleeful as his troops 

^ Dut^ X’a.i^S SU ”^ L thou ’ b - thal ‘ h « ,iu,e fall a?Su«d him. 

Bai!ei - a « d v •-«;« n«av siissjiK Th r Iosin % F Zm;i“o 

- v_ v - ■* wirT.-irror^ 

s ^ . They expose its vary ex- lighting, more, reminiscent of needs to ue f u ^ d ’.. ai J? T J® 

chanties with wonderful alert- the gas-lit stages its once graced. Polka cries out for Warkovas 

• - -\. lira*: the danci'd challenges and And io prove something other exquisite feel (and her anility to 

' v - ■ •’ riu:i* , f>. the final angry eon- range, Marion Tail was also seen perform double lours cnlnir) 

... fronraiior. as die girl removes as the tormented heroine of if it is not to seem leaden out 

her heeled shoes a 3 d flings reh- Gore's Coiiiessionof; she has the Alain Dubreml and Margaret 

jijt' self at The boy. are a portrait of subtlety as well as the dramatic Barbieri oner the proper eom- 

- jn urban courtship ritual exactly sinew to make this dark piece binatinn of hair-oil and idiocy To 

- refli-iTin-* the drv gamelan very moving. extract every laugh from the 

L’uiiivr of. John Cage’s Perilous The SWRB dancers also Tango. 

; Festival Hall 

te^§S)i Black Pentecost 

1^' ;'T ; bv DAVID MURRAY 

On Tue-day Simon Rattle and prescribes — except at the start lence count for little against 

‘ “ J 7 , die Phiihanmmia gave the of die ‘fourth movement, a the prevailing lone of elegy, of 

Pamela Stephenson a: Mabel in the . ),elai***l t>r.*L. performance of aj'ncopaied iwitlering for which lament over imagined future 

if Penzance " which opens at the “cn-r \U\wel! Davies’ R lock (tie printed tempo ^eems riskily griefs. 

2Ath with previews from May 17 rVuieeuil Ir was composed in fasi). The work la-ls nearly Tt is a puzzle. With the arrival 

; !«79 fnr 'he I-omlon Symphony, three-quarters of an hour, and of the solo voices, we have to 

1 who decided lhat it wasn't what its first third — before any adjust our listening: suddenly 

: they wanted io celebrate liieir word is tong — is a double- there is a fragmented story to 

! “rilis birthday with; by intern variation set, sounding strongly follow, while the symphonic 

i non it is a prote-t agamst " evocative " at first bui sunn workings continue. The big 

■|*T T ■ uranium mining in Orkney, declaring a sequence as formal inilia! Adagio is uncomfortably 

T V where Davies now makes his as brahma’ "Hayin' 1 Varia- succeeded by all this leisurely 

J hume. But u proves io be no tions or (mure apposite) recitative (though there_ are 

>«»rt of ecological paster, nor Webern’s Variations for Orches- gorgeous lyrical passaees in it, 

are Davies’ music-theatre de- n*a. Tlie key expressive mude rather diyly rendered this time 

vices in play; ir is an extended is ilia! of a Mahler Adagio, pas- by ihe conscientious singers. 

. symphonic work. with a sionale lilies in ten wining. The Michael Rippon and Jan De- 

. Illlh , rfp n *init«n- ^t.iiiialic content fixed bv sung pulse and tile density increase. Gaetani). The texts are self- 

. ' passagr-* From a George Mackaj gradually and predictably, consciously simple and literary, 

symphony requires in its last B roW n novel. The theme is until we reach rhe second move- greatly indulged in Davies’ 

iiiuw-ineM. . bruial dispussessiou in the merit: a baritone announces the setting, and still to specific to 

It could be arsu^d that the; name of rapacious technology, sinister Operation Black Star, sit well noon the grand, abstrac- 


demanckn’,' 


Herbert 


_ ou, ii. ; * ... murKci. xei me mvisen svui- 

5SS« L east . 1,ke,y tom P nser °f such phony is an honourable esn-jv 
1™ L ra .7 k . ™ u ®“ 5nt * ss ’ ln . ,be lion, for Karajan’s inclination. 


T)p„r«*ho rnmmAnhn. « aa , " . - — 4,1 non. ror jxarajan s incunaiiun, wenern >cmioi. .musi. miwever. k*.- . 

Deutsche Grammophon 2o43 Ostmato and Vananons of the u - ould Sl?ein 1(J mjkf . j liin an Ul |l find Hie cuphny of more lunsuiiofs. released to celebrate nettes of iv.u o r ibree charac 

Nielsen 1 Svmnhnnv A T n a Rortin same ^ ult ^ There *s a glitter and ideal imerpreter; one hopes, intpp-sl. for there are already l ds birthday presents this ter>. 

iviewen. byrapriony No. 4. Berlin panarhe That provides an effec- without ton much o\ oeciat ion M-venil fin.* Ctnmber nervy, aggressive manner in I should guess thar this firs' 

Philharmomc/von Karajan, rive fort and m rhe wtnout joo_ much ^cxpcctailon. £ '«ra' c b u rh j*„ u.-.t w-.m.iu.nv vnd . audience found Block Pcuie 


Deutsche Grammophon 2532 Songs also. Abbado’s delicate 
B1 ”~® . . _ . v .. touch and Margaret Price’s 

Shostakovich; Symphony No. 10. chaste purity produce an almost 
Berlin Philharmonic/von ideally modulated account. 

u ?Li® eBW * ,e Gram mo- Yet the allure is achieved at 
phon 2532 030 some cost. The Three Orchestral 

ftluizoni: Masse: Omaggto a Pieces reveal this most tellingly. 


Webern school Most however a "ces. The set of archive per- . Orkney community, with vig- Budge is the subject of the third searing string-writing, which 

will find rhe L'ii’i ill ini’ ,if mow lunsuiiws. relejsed to celebrate . nettes of two .i r ibr«-e charac- movement, with a ripe vocal this time taxed the Plulhar- 

iniHPM for there irp aireadv llis «wh birthday presents this ' ters. . line blunting the scherzo-preten- monia strings too hard for all 

a-veril n„.* Ch-imber nervy, aggressive manner in l should guess thar this first sions of the orchestra. The final its expressive power to be felt. 
Svinnlmiiies iu he !inu-h> burh 'he flixt svmplior.v end audience found Block Peine- movement welds together (very A suspicion remains that in- 

ir,n r.ni\ nir..-,. f..r inr) ttvlrhozur's FrtLsf as well js s ’ ewtl lou protrjcJed to make a ingeniously, in purely musical stead of veal development. 


raoni; siasse: umaggio a Pieces reveal this most tellingly. “.JS*?? 1 ;,, orrh.^tra afier ihe manner'of Fv u „c..u suiie from Facade. \ 

Edgard Varese, Schoenberg: for what should contain some of _ a J ^Y 8 " 1 * !Tf a . rhl a late romantic concerto The Porismouih Rumt and Johannes- I i#; n( _)i c u j 
C hamber Symphony Op. 9. the most powerful, terrifying ]JL ork ^ , , t ^,^j?L our . i ^ Tl . sl *2 S r ear evenm.illv tires or ihe h«rq Festirul ovenures and the j ■' ,n S * Head 
Maurizio Poll ink Berlin Phil- music produced by the Second special pleading, , simply as j reiiior«»*less barrage* Ion "s for uioiv substambi Partita for I 
harmonic/Giuseppe Si nop oli. Viennese School is here tamed late, magnificent flowering of P J r tmt"TMan/.'miis unfhesira. I A -- A 

I^, S ch. G r, mra0 p h 0 D 253S ^ ^ ™ 0 7?rihf TW Ihr.^rd M . in! AlKl 


gjMr cnanphn 3M Mk Sl^fi'WSlSS^ proh-hlv n far mor, The Ihr.^nord in 

W.ln.1.: Symphony mx Phil- JlfllcUtaHs iSu«d! «!«•»*. »*« *•<» 'tSrt. 1 ^ «Jn«' wi. 

harmonia/Bernard Haitink. It is evidently not treatment that nnp revive prandei.r: the deb- JJJJJ or worK rai " m bnoWet of ni.tes bv 

EMI .ASD 4091 can be administered indiscrimi- cate of fhe Intermezzo g^nard Hail ink’s Walton fin -m wSeomli and 


And Miss Reardon drinks a little 

by ROSALIND CARNE 


pm en a n is evmenuy noi ireauneni inai — f A, T i SIKSgtfSl. formed booklet of notes bv ■ J 

Walton conducts Walton: Phil- nateWto^emlSne Ber^wrote are efforrleilv traced. Some Bernard Hailink’s Walton Gillian Widdicomlie and. othera. : The' besr comic characters rewarded, largely because- of -Gun shots and raw meat in 

h.™o“,”viHi,m‘ Mon. (Lnta rend'wd oxclSeb: In ~y find the .ppmeb .no £,? ''"’ntSSce nf' hl In-ft •«*" “ « a " 1 ^ ,h * ** sny^e poy reportee. chnenln.e bom provide plen.y 

EMI SLS 5246 (three records) these terms would he oositivelv sophisticated for a composer T „ f ,.r , h S . puixs. ih«. marches , and inlo your life. Al Ceil Adams is married and of slaue business on the appro- 

{ YLL—.:i SSfnous Md “ whose rustic plainness is pari C'S, **** * " v i^ d ami overtures is paradoxically leas , lhrtfe of Paul Zindel’a successful, wiih a good job in priately dowdy interior design 

Most series of reissues unthinkable) but in tiie works of his appeal, vet ihe preset] I here Tbt< basu t* llt-nKo hih nior** valuable Hun his accounts neat ions are old acquaintances, child guidance; she visits her by Simon Elson. The director 

announced Trite -JecoJd com- Performance t far more" K S iriVteKkJ JgZSZ 1 T ■*"**”* shortly - after their is Michael Osborne who appears 

panies seem to be devices to. re- achieves considerable success. to bring the music to a wider. eff.,.' v n ,?' di. vhere he otjk/murr. ouMTi-'lousrisk-s K ^ rd on t heraelfi. a highly- mothers death Catherine to have encouraged the actors* 

cycle seconcl-raTe nr aged per- The sinewv nbiecrivitv nf inlernarional audience even e " J,. 11 . ’ -nw tne to take muri ouiij»u.us risk,, poised schoolteacher who mam- Reardon, the drinker, is taking aptitude for Hamboyance and 

formances of the* standard reper- Honeggert svmpEeT 'have without the benefit of such 5 °emo?io^ 1 a prions temper and care of Anna, also a teacher, hysteria. The gamble just 

tory familiar releases in a new acouircd a significant follnwine star name to conduct if r ,s n,d ' Rmtn ^ ‘ ls . cmoi ion.it bom b.ist more fullj. ■ The styu- deport jueni throughout the who has gone mildly loopy, succeeds; no one in this bizarre 

Slly' flamhoya , St a p n a ckl Secl^T Shostakovich ^ Tenth is the ^ ^ ^ h n.ro? U ^ri°J 1 ^ thn g** 1 '* 1" ° f 3 »"*«»*« .!«« souls ever 

aging. Deutsche Grammophon's sionary effectiveness of Kara- latest of Karajan’s duplication,. ™ £& imohSE Waller Le-,. s ^ri with thi , . tiriofnl . a Pf r(?ul - P^rtly ih rough an ones- loses touch with the spectators, 

new ’’Collector’s Series" ian's recordinz in its finr im-ar- brineim* the hennfiis nr dimial ■ . - ( . ° *>nipnonit waiter lc„ls pmon vnn ilie ; uhnstifle Lreairex leads a plained episode with *’a boy." for all the confusion of dirty 
promises to be a 11 trip different' nation The reissue is enuallv sound to what was alreadv a ® omIC,, ® n ^' at nu ‘ r *l s a P 3rt orchcsiru is vep- high and a . strung cast, all of who deal with \v> learn a little more about dinner plates and wine bottles in 

an emphasis on the less usual impressive, and the leanjmnpid distinguished interpretation. eSririi,? th« n Si! ; wJl'r^^car^fide^V^She !l" S un “ entio “ able fo , rsy tajo this cluttered pub theatre We 

and a chance to acquire some sound of the 10-year-old disc is Since the original version kS of ph^ical^tS in the dULVor No oft^ wour^ ! ^,k /tlurenBucaJ^drawI u! lhe mu / dy poo] ¥ se l , from ,h S a r e . Ieft f w,lh Perplexing 

valuable oddities at mid price, an accurate counterpart to the appeared the choice of versions SotS k iws dcsiralile bm rh^ Liicr JlrsioS in le^ ; he UnetlSSiini rtie - £Siert Vw d Sf CO “ ple ’ . F,eur . and vi * Ion of . a w ° r]6 , °* 

The first hatch of releases symphonies’ astringency. Of the has become far wider, with the L S s rS «in oia h’ of In- nwrii*. ^ i nd cSciS? * ie^ ? ob ‘ 1 These two horrendous who speak with the tongue of 

seems to bearout the intentions pair of works here it is the advent of Haitink’s complete vinS^ri in ibi finale which cinnm h^ found of IhV mS ' desmb^cr^t ^rter^ busxbod.es quickly upstage the an erudite Neil Simon in a 

of the series 1 anart from the earlier second svmDhonv- of evde for Decc-< Berlin, ld’c ' mniiHiro in iue nnaie, wnicn cannoi r*e iouna ot tne major . aesunDe> crazj sister Anna wno miserable Reardon tno. scenario worthy of Garcia Lorca. 

„ . senes, apai, irom uie wruer, secona sympnony oi cyme ior uecca ano Beraumo s tarries mure weight and variety works; many will find the " caressed vegetarianism and 

Berg and Honegger discs listed 1941 for Strangs, with a trumpet shortlived recording for EMT: 0 f mood rhnn usual, for once authenticity of fheSe n*conls , later oit-mne " a lifeguard to 

f bove - l J\ ere TT IS i CQrf1 solo reserved for the final bare. Karajans mastco’ of the providing the emotional range some recommendation in itself. .;iie cockroaches ” in Dip bath- Saleroom 

issue of . Hindemith's opera that seems to me the more con- symphony ! deceptively . I yuolll nrst scene I felt 

CardiHac. Schoenberg's piano siderable work, establishing treacherous structure is no i Mr Zindel might be a play-’ T) ^ ^ ,-1 

ftfid violin concertos and ran- Honegger arguably as the most longer unrivalled. The Berlin £? 0,000 grant for Cathedral. niUSlC \ wrjghi to- admire rather than ..»- - ' KCCOrQ IOl SlluII DOX 

ri^by Liszt and Lalo. profound member of Les Six (in Philharmonic, however, is still - ' r „ JO v. as he creates a world of uawu 

v -Abba do’s Berg anthology is a a group which hardly pursued beyond compare in its quality The trustees of the Triangle makes grants to Anglican and i anxious cross-currents. Bui the A gold snuff box inlaid with ample sold was made in Berlin 


Cordillac . Schoenberg's piano siderable work, establishing treacherous structure is no 
•and x.iolin concertos, and ran- Honegger arguably as the most longer unrivalled. The Berlin 
rie3* by Liszt and Lalo. profound member of Les Six (in Philharmonic, however, is still 

x. .Abbado’s Berg anthology is a a group which hardly pursued beyond compare in its quality 


Record for snuff box 


v .Abbado’s Berg anthology if a a group which hardly pursued beyond compare in ils quality The trustees of the Triangle makes grants to Anglican and i anxious cross-currents. Bui the A gold snuff box inlaid with ample sold was made in Berlin 

W&Jcoroe return, not only profundity) and as the one and the virtuosity with which it Trust (1H49) Fund and ihe Catholic cathedrals lo help their ’ mood loose ms with the arrival mother of pearl, once in the col- around 1760. Another box from 

bemuse, unhelievably. ir con- most Uidined to la^e^ale assaults the scherzo, and lhe Jephcoit Charitable Trust have commitment to a unique British i »( a P?ir of tiresome, loquacious Twtfon of _ Frederick the Great his col , ecljon . carved with 


uimnwvvmj. ,v a»auns me senerzo, ana me jepnconc.naru.ioie irust nave commitment to a unioue British ■ »f a P a 'r M tiresome, loquacious rrcuencK me ureai his collection carved with 

tains the only version of the musical thought There Ls no horn solo which announces the made a iota I grant of £50.000 to Iraiilandrn'mto seure "-^boura. and it U hard not lo of Prussia, sold for SwFr J From th e Seven Years 

Altenbcrg Licdmr currently trace of the whimsical minid- finale is gorgeously warm, the Friends or Cathedral Music * raa 1 on ' ana IO lr 5 10 seiUre : laugh us the madness mounts. 1,540.000 (£435.028) ai Christies ” enes tro “ J; ne “ e v ^ n * eai [ s 

available, but also for rite fresh wrist to be found here. Karajan pursues the climaxes as an endowment fund, the . 1 lra diii'«n for future genera- j There is no discernible plot, in Geneva on Tuesday night. *;^ r ' nM,de ™.14b and a Louis 

approach to conducting the com- Karajan’s excursions into the more relentlessly than his rivals, income to be used (or the bene- lons - 'simpiv- a series of highly This was an auction record for XVI box with Chinese scenes 

poser it represent*. For those 20fh century' have regrettably screws more intensity out of the fit uf cathedra! choral and organ An interna tiunallv supported : charged encounters, peppered a box. The buyer ‘ was the 1 fetched the same sum. In an 
put off Berg: by the muscular been infrequent, for his con- jagged outlines; for those mimic, in memory of the late society, it is presently commit- • with numerous confusing refer- London dealer S. J. Phillips. auction of Russian works of art 

complexity of. his textures siderable gifts as an orchestral reasons his account has lhe Sir Harry Jcphmlf. led to 16 cathedrals* involving ences Lo offstage events. This Frederick the Great was a an enamelled silver gilt white 

Abbado provides a soothing, manipulator would be valuable greatest impact. The Friends of Cathedral a total sum of more i ha n ieu.Ouu i makes heavy demands on the keen collector of boxes, having quartz clock, with the Imperial 

enveloping balm; his translation in many areas of recent music. The coupling of Schoenberg Music was founded in 1956. and spread over several years. audience, but efforts are around 300 snuff boxes. The ex- warrant mark, sold for £34.375. 


THEATRES 

AlIMY. 5 3878. 0-«Jlt ord» 379 J 

6SSS-930 0731. Gl-p bfcas >3S S042- I 
BM 3962- Eves 7-30. Tfiars & Sit Mil. ; 
OLIVER COTTON. ELIZABETH QU!NN 1 

CHILDREN OF A LESSER GOO. ; 

ALDWYCH. S £36 ftACU. CC 379 6233. ; 
For" snort UMiM. ALAN HOWARD. | 
Bast Actor Ot Ut« Year Ip .The RSC ; 
Avrird-wlonlnp _groducll}»n of Com. . 
EVES 7 JO SHARP mats Wed * Sst 2-30. ■ 
AMBASSADORS. 138 T171. Gns ule ! 
* 73^06l7TW MS0. ES.S0.14.S0. €4 | 
£3. Eves 8 pm. Mat* W«0 3 * S«mm 
S. ROSEMARY LEACH. DAVID SWIFT ; 
88 CHARING CROSS ROAD by HeleAe [ 

Hang. I 

Apollo. Shpltcsburv Ave- CC 01-Ay . 

gjv jow&r jB gagwg cmttTi NGS. __ 1 

wvsn* i 

SiwiSj! E^. tK 7.30. ,, M S lu YVr I S S S« i 
3,30 , Boa Ofiifr tfl llw-8 pm. fn 
pcrssnilllIMjDOll A SA£ HOTLINES : 
01-828 8S6S-fi-7. Credit cargs 01-824 • 
6919(6184- Tr'idau 01-200 0200 , 


CHICHESTER FESTIVAL THEATRE. 0243 
781312. Season sponsDed bv Martini 
4 Rossi Ltd. KEITH Ml CM ELL in ON 
THE aoexs Svminot 7 30. WUt s»t 
2 30. 

COLISEUM. S 836 1161. C C 24 D_JS2sV 
Until May 29 LONDON FESTIVAL 


01-200 0200 
1 01-379 6061 


24 hr canitf. Group SAlO 01-579 6 Oil 1 
Grow BKBS 01 -8-9 27St . THE SOUND 
OF MUSIC. Lsnaan'i : oreaiwi «lw 
Good Jean from C2.S0 Pg" _ jBS* -i e 
S tdOOr. NOW BOOSING TO S EPT. 18. 

A5TORTA RESTAURANT nZ . ATRI 

SMI 0 x i-5S^ , r53i S f e 5rfNS o J"^E^ 

F^WRV«r 5 D^?lEi Une FO S ui^D 
8Y THE OUTRAGEOUS MUSICAL WILD 
WILD WOMEN. Fallowed bv 
rtQ m 2 tfj £.%s ivicl. IntCiat credit 
card booklndi 930 0731/039 4466. Red 

group btw 839 5092. 

■OUIICAN. S 01-628 8795. CC 01-638 
ini (Man-sal 10 am-8 Mi Sun 1S S0- 


COMEDY THEATRE. S 930 2578. Credit 
card boa VI TIBS 839 >438. Grp ulet 370 
WJ61. MW-Fv 8-00 Sat 8.15. Mat* 
TIlur S. Sat S.15. Price L2 M-C7 OO 
me: suitable for cbilurvni. STEAMING 
Dv NELL DUNN. 

COVENT GARDEN. 240 1066. ACCKIJ 
Vim 836 6903 700 Prom* places avell 
at £2 oo tbe dav. 1 hr Before pert 
•from rover Sax otlice. COVENT 
GARDEN PROMS. Sponsor »Q by MidlliKl 
Sank Ten't at 6 00. TrUMn oed 
holda Tomer a: 7.30. Afternoon o i a 
Faun. Flwu Festival at Smue. GiMlIe 
Sal a: 7.30 Eugrne OecgM, Ead oi 
Pram* Week. S 6S Amphisrit* avail 
for all perl* ’Mon-San from to am en 
Hie dav pf err* THE ROYAL OPERA 
Mon a! 6 00 Tristan and Isolde. Turn 
at 7.00 Simon BOCCewrura. STRING 
QUARTET Wed at 8 pm. Lindsay 
Quartet. I 

CRITERION. 930 3216. CC 379 ES6S. 
Grp reductions Sj> 6 3962 Mon n Tburs 
7.30. Fri A Sa- 6.00 A S 45. Oeer 300 
performances ot DARIO FO S COMEDY 
CAN'T PA Y7 WON'T RAY! StodCitU 
£3.50. belt seats avail In advance 


GLOBE. S CC 437 1S92 . 439 6770-6779. 
PASS THE BUTLER. The new comedy hit 
by Erk Idle with WILLIAM RU5HTON 
JOHN FORTUNE. MADGE RYAN and 
PETER JONES. Mon-Thor 8-0 Frl & 
Sat 6.0 & 8.45 MUST END JUNE 5. 
(Mon May 17. Curtain d» >4Sl. 


HAY MARKET THEATRE ROYAL . 930 
9832. June 240 Ulv 7. PETER BARK- 
WORTH in a Coat of varnish, a 
new pl ay By Ron ald Millar. 

HAYMARKET THEATRE ROYAL. ' 930 
9632. PENELOPE KEITH In CAPTAIN 
BJtASMOUND'S CONVERSIONS. bv 
Bernard Shaw. Previews June 3. Opens 
June 10. 

HER MAJESTY'S. 930 6606-7*. CC 910 
4D2S-6 Group sales 379 &061 Lves 
7.30 Sat mat 3.0 FRANK FINLAY Jn 
AMADEUS By PETER SHAFFER. Duelled 
by PETER HALL. 


I NEW LONDON. CC Drury Lane. WC2. , 
I 01 405 ourr or 61 -404 -1070. Evs 7.45 
Tue. and sat 2 0 and 7.45 The Andrew I 
Lk»B-WvhPer-T S Eliot Auird Wlnnion I 
musical CATS. Gioun nooiinnc 01-40S I 
1567 or 01-379 6061. LATECOMERS '■ 
NOI ADMITTED WHILE AUDITORIUM I 
IS IN MOTION PLEASE BE PROMPT. 
NOW BOOKING TILL JAN. 29. 

OPEN AIR REGENT'S PARK. CC S 486 
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* Drevi-wc from June 4 A MIDSUMMER ' 
NIGHT'S loins repertor v June) 


SADLER'S WELLS THEATRE EC1 837 
1072 167 3 36 56 Cr.-cii .4. 01 10 am 

to 5 pm 27B 0871 837 7505 Grp sales 
379 6061 24 ii. in-.tantlt canh/mep r- 

JUO 0700 SADLER'S WELLS .ROYAL 
BALLET uni. I Mir 22 Eras 7 jO Mat 
Sat 2 30 pm Ton't to Man Copoeha 
Thur May 20 7. 3D pm Sadler's Wells 
Royal Ballet A Inlernabaiul Guest ArtcSt* 
In a Royal Gala. Sprinu Dance Subscrip- 
tion Season. Tel 01-276 OBSS tor 
brochure anr rum- da% or n>Qtii 
AMPLE FREE PARKING after C SO pm. 


KINGS HEAD. 226 1916 D nr 7 Show 
B. AND MISS REARDON DRINKS A 
LITTLE, a comedy by Paul Zindel. _ 

01-437 7275. 
In the Broadway 
, 7.30 Mai wm 
Oarnurn Hotlines 

6961 tor Instanl 
NOW BOOKING 

LYMC HAMMERSMITH. 5 CC ,01-741 
2311. EXTENDED UNTIL THIS SAT! 
Eve* 7.30. Sat 4.30 & S IS RENTS BY 
Michael Wlkon. 

LYRIC STUDIO: Eves 8 Common Stock'* 
THE SECOND UNE. 




— — — — — — rino Ti-U'daU 01*200 0Z00. 


PALACE. CC 01 417. 6634. . CC Hodinn 
437 8327 Andrew -.loyd-Webbur': SONG 
AND DANCE Starring Marti Wubb 5 I 
Wayne SS-.u. Mon-fri I pm. Mat'. Wed ; 
3 Sat S 46. 8. 3D Some sood seats . 

Still aviilacJi- rro-.l prrts. , 

PHOENIX THEATRE tClurliw Crou Road' 
01-S30 2294.- BG 11 Eve* 6.0 Fri A Sa: , 

6 0 C 9 0. 0:JE MO TIME 1 THE CHEAT t 
NEW ORLEANS MUSICAL ONE MO • 
TIME IS A GOOD TIME* Group Sale* '. 
01-379 liObl Rmu TMedan 01-200 , 
02GD lor instan: lomriMrd CC hooHfioi 
24-noui' person'l servico available 

PICCADILLY. S 437 4506. CC 37g 6S05 j 
Group M'vs 01-85U 39b2. 379 6061. ! 
Pre.lel bio*. Krv 2J0 2324 Mon Fri I 

7 30 Mat 3 0 Sat S 30 A 8 IS | 

Stud .ui'. £v SO in advance. ROYAL i 
hHAk t SPE4 HE COMPANY In WIPy ( 
Russell's ncv. uflTurdv. EDUCATING RITA. • 

PKINCL EDWARD. Tim Rue ana Andrew I 
Lldvd-Wi hb'r". EVITA. Dirrtlrd bv 1 
Harold Prime fc>OS 8 CO MjIs Thur J 
■KononiY niirt< and Su: 3 00 Evg pert ; 
ciKM 10 15 s Bot Outre 437 6877. CC - 
Hotline 4 37 B493. Group tains. 573 6061 | 
or Boa O'hiC. For HlsUnl 24-hr bkov i 
rino Ti-leilaU 01*200 0200. 


CC 01-A» 8242. Monday 
8.0. Friday s. Saturday 
). VICTORIA WOOD and 


ST ^*15. rVStS-i. SMi i JTL 

avail tor mu" • DUCHESS. % CC 01-B36 8242. ^Monday 

THE PIT— -A OOLL’SHOl™ »Y Henrik , jt 1.0. Friday 5 Saturday 

Ibsen twrt 7 n 45 Din. use .Ho 41 B .30. VICTORIA WOOD and 

AklwychiPtccadnly. | the GREAT »PW»BO In FUNNY 

TURNS. 


BARilCAN HAU. iartleiB Centre EC — 

CC 01-631 8 ® 91 J m R f S ^0bKuL' CBBc£t DUKE OF YORK’*. «K 5122. CC «S 
8795. Toda y. 1 _R Wl Lw HatliDL. gQRWW- afn GrBBB Mies 379 5061. Mon-Thurt 

I 7 45 Frl 6 a 9. 15. Sal 5.15 5 8 30. 
c ** eert «^ l,co «— SET?- to Simon CallPrt *P8*r| Rweart In J- F. 

haven: Strlns Qwrtrt '« JL- P?» 1 { omtaw't BALTHAZAR. Enjoy pre-show 

1. Strhia Quarwtin & £o (*■ N®2- SSw «t Cafe Charto plS t« tor 

Hggj£° B EirtS ,iWU ?SS^ eSSSSS?. i E7.80 Tel 939 4740. 

g**B . I FORTUNE. EM 2238. CC 200 0200- 

^ “ Exh '“ ie "’ j W MaWS 

iSiLEVARD thea^xt^ T ^^ **' * ” a . s . p m :..! ,, I— i \ nnteiZr 

RivutUf Amtrlcan Tffww’ companY > aa*dick. CC IK fi404. Ev«s B. Man 

^ ® ' 

PLEASE WE’RE MinSH. Dlrettod hy 
Allan Divit. Gnap tales So* OtTice 379 
8061 . Credit card book l net 830 0731 . 


LYRIC THEATRE. Shaticti>urv_ A*e. Bov 
OBke 4 V 3688. Tel. Credit card 
bkas accepted. GLENDA JACKSON. 
GEORGINA KALE in SUMMIT CON- 
FERENCE. A new play bv Rebert David 
kgaCDonald. Evyi 8.0. Matt Sa: 5.0. 


PRINCE OP WALES THEATRE. 030 

BliOl CC rtotllnr ,030 084b or Teledaia 
01-200 0203 i24-liour bUpti or hookme 
on entry ROY HllOD. CHRISTOPHER 
TIMOTHY iu UNDERNEATH THE 


. ARCHES. A muiuji of il»e Flanonan i ■ 

, ... T.tf Li Tk ,„ f Alien IIVI. E*R* ,Mofl-ThUra 7 30 Frl ; 


M44YFAIR. 5 CC 629 3036. Mon -Thur 
8.0. Frl A Sat 6 5 8.20. Rlclu/d Todd. 
Dcnren Nesbitt. Caroir Mowlam In THE 
BUSINESS OF MURDER- SECOND 
GREAT YEAR 

MERMAID TH.. Black Irian. EC4. S 236 
5568. CC 236 53Z4. ROBERT HARDY 
SIAN PHILLIPS DEAR LIAR. 7v« B.0 
Sat 5.15 i 8.30. Halt price mats W«b 
al 5.0. Croup uIm Bov Dfllce 01-379 
6061. Pre-ttwaire Moper from b. 

NATIONAL THEATRE. S. 928 2252 
OLIVIER (open sage* Tan’l To mar 5.30 
liner only g more pwl5 — mbit end 
June) THE ORESTEIA lo IIS entirely 
• please be prompt tor 5.30 pm sldrt— 
revet IHt^onun mint stand til 
Int erva l!. 

LYTTELTON Iveuenliiin '.iJQel _,Ulw 

es&jrsL !«sr_ ISS.A, Vo s mo“ N 7 c “ 


at 7 JO, ’ Book flaw 03.437 266 1 


& Sal ar 0 IS A 8.30. Grbup uln Ber 
Olffep 01-379 6061. 

QUEEN'S. S CC 01-734 1166. 439 3849- 
4031. Group sate 01-573 6061. Even- ; 
iwos 8 00 Wjd* Sat S.T5 ana 
8 30 ANOTHER COUNTRY by Julian ! 
Mitchell 

, RAYMOND CEVUEBAJL CC 01-734 1 S93 ' 
At 7 00 0-0C and 11.00 om. Open , 

Sum PAUL RAYMOND present! THE | 
FESTIVAL Ot CROTICA. ! 

ROYAL COURT. 5 CC 730 1745. Evgt I 
■ o s.n Mai 4 o Mon E*m 5 Sat i 
Mat all vie U. NOT QUITE JERU- | 
SALEM hr Paul Kembor.- 

ROYAL COURT THEATRE UPSTAIR': 750 ! 
2554. BAZAAR A RUMMAGE By Site ' 
Townsend E w 0S 7;30. i 


Tfln diuinqur.hrd Dutrh JC lor In A 
GENTLE SPIRIT b» Oa-.toc.iky. Cips 
_7. 30 LAST WEEK. Ends 5»l._ 

ST. MARTIN'S. CC 836 1443 Evgt 8. 
Tuesda% Mar 2 4S Saturday; 5 A 8. 
Aq.lthJ cnri-.ne's THE MOUSETRAP. 
World a Ipnoei'-v-er run. 30tn Yejr 

STRAND. CC S56 2bb0-4143. RALPH 
RICHARDSON JOAN GREENWOOD In 
THE UNDERSTANDING. A itpu, pt*v by 
Angela HulN E-: Mon-Sat b om. Mo! 
Sat at pm. Iraup joie: Sox OWI:c 
579 6001 

TALK Of THE TOWN. CC 31-734 5051. 
For r-iervjtiom or on entry. London ; 
Grr-aieti Nipii Due from 9 an. 5 hours 
Pi Ton taleruinment THE TALK OF THE 
TOWN GALA GALAXY REVUE >9 50' 
with a <ast o' 35. JULIE ROGER? 
ill pmi Din-.er Qjncipy 'I band:. 
FROM MONDAY JOE LONGTHORNC. 

VAUDEVILLE. CC 07-836 9988. Eves 8. 
Wrd mat-. Z 45 Sat! 5 S 8 GORDON 
JACKSON in AGATHA CHRISTIE'S 
CAROS ON THE TABL E. 

VICTORIA PALACE. CC 07-834 1317-8. 
OT-B28 47 IS '6 DENNIS WATERMAN 
ANTON RODGERS. Tht Nen Mu&itai 
WINDY CITY ts-.m on 1JB play T«e 
From Faye. Duelled by Peter Wood. 
Previews irom j-ii- 9. OPENS JULY 2T 
at 7.00 Sub nigntiv ■: 7.30cm. Mat 
Wed 5 Sat 3 OOpm 

VICTORIA PALACE. CC 01-834 1317-8 
01-828 4755-6. Ergs 7-30 ^ Mats Wed 
A Sai at 2 30 Limited number of go*d 
teals avail this week. ELIZABETH 
TAYLOR in THE LITTLE FOXES by 
LILLIAN HCLLMAN. Credit card! 
aitemcd Group ulet 01-379 6061. 

MUST END JULV 3. 

WESTMINSTER CC 834 0283. HANNAH 
GORDON. GWEN WATFORD. PAUL 
DANCMAN in THE JEWELLERS SHOP 

bv Pope John Paul ll Red pmr y-e.s 
Irom Mai 17. c rrs 7.45. Mau Wed A 
_Zat_ 2 3Q 

WHITEHALL. 839 6975. 930 8012-7765 
CC 930 669 '-4 JOHN WELLS in 
ANYONE FOR DENIS* Mon-Sat 9. is Dm 
Sat mat 5 pm Student tnndcv £3 SD 
1 nr belorc per>. Mon-Sat mat. MAT 17 
ONLY. PERF COMMENCES 9.00 -PM. 
MUST END MAY 22. LAST WEEKS 

WYNDHAM‘5. a CC Owing.* Rd. 836 
3028 CC 179 CSuj Grp reduetrpny 
836 39b 7. Mun-Fn 7.30 Sat 4 30 & 
BOO Wen mat 2.20 CD'.lN BLAKELEY 
P-OSEMARV -ARRIS m ARTHUR 
MILLER'S ALL MY SONS, directed b. 
Micnael Biake-non- Students nest seals 
avail. 63. SO n advance. 


VOY. 5 171-836, MSB CC 930 0757. , ~;^' t — 


BREAM EK ROV HUdd. 


F.T. CROSSWORD 
PUZZLE No. 4,870 

ACROSS 

1 Apt description of spinning 
meteor (6) 

4 Spill the open vessel (8) 

9 Result of father’s attempt 
at baking? (6) 

10 and 12 What lo do if there 
is no market upstream— 
betray 14,4,3,5) 

13 .Come down on a seat (6) 

15 Reversible act (4) 

16 Boatswain, or what he will 
be after slimming (10) 

29 Sixty, but most of the bats- 
men get a duck (10) 

20 Stop the flow along the main 
axis (4) 

list I’d rewritten in order 

to purify t.6) 

25 Connected with being very 
fond of (8) 

27 Ineffectual handicapped 
bird (4,4) 

28 Turns eight on board (6) 

29 Left late (8) 

30 Stylist division by end of 
day (6) 

DOWN 

1 Alleged to have been placed 
in a wind instrument (7) 

2 One of three armed soldiers 
bonked (9) 

3 Go round with one penny 
for a vegetable (6) 

3 Look at tbe scene (4) 

6 Substituted for having made 
.less unpleasant (S) 



7 Change for submarine 24 Conclude that an amount of 

money has risen (3,2) 


8 Girl eager to produce mat- Area fcwl (4) 
erial (7) 

U Cast a spell ever second-class . S#I “ ti ' m t0 PuBh> No ‘ 4 ' S6S 
sorceress say (7) 

14 Careful about it having be- 
gun at home (7) 

17 Incomparable without a 
game (9) 

18 Puzzle : to be more out- 
rageous (8) 

19 Took the first steps (7) 

21 Wap to try heartlessly 
with humility (7) 

22 Portion of land might be 
wrapped up <$) 


|anaBa^^a35aa§ 

n n □ H r» 

M S 9 S 0 S™ 

gagEiia|aQ |ain 8 

aarpa onaaiiaoag 


anaoHDaBn nnannj 

a Q i a g e n l n g°| 0 M 

aaogaaa naramnen 





22 


Financial. Times -Thi^rsda^ -May 13 1982 


FINANCIALTIMES 

BRACKEN HOUSE,’ CANNON STREET.-LONDON EC4P4SY 
Telegrams: Finantimo, London PS4.Telex: 8954371 
Telephone: 01-248 8000 


Thursday May 13 1982 


Ground rules 
for Eurobanks 


SIX YEARS ago the challenge 
facing the Basle-hased Com- 
mittee on Banking Regulations 
and Supervisory Practices was 
reasonably clear cut Banking 
had become an international 
industry. But banks were still 
being supervised by national 
agencies as though they oper- 
ated within nations. 

Banks were embarking upon 
new adventures. They were 
ganging together to lend to 
sovereign states and to recon- 
cile burgeoning payment im- 
balances. They were ever more 
visibly borrowing short to lend 
long. They were increasingly 
dependent upon an amorphous 
interbank market for tbeir 
funds — a market growing at dis- 
quieting speed. They were doing 
all this in an environment of 
more volatile interest and ex- 
change rates. 

Energised by the celebrated 
bank failures of the mid-1970s 
the central bankers made rapid 
progress in stitching together 
national systems of bank super- 
vision into an international 
whole. In the " Concordat ” of 
1975 they laid dow-n a division 
of responsibility which ensured 
that no part of any inter- 
national bank would escape 
regulation by some authority 
somewhere. 

They promoted the flow of 
intelligence and statistics 
between the many national 
regulators. They promulgated 
the idea of “ consolidation ” 
whereby any bank's worldwide 
exposures are brought together 
and presented to the scnitnny 
of the regulatory authority con- 
trolling the parent bank. 

Tougher 

It was no mean feat of inter- 
national co-operation — but it 
was the easy part of a job 
which is now getting tougher. 
In the first place the macro- 
economic background has 
changed. The case for restraint 
was obvious when the habit of 
borrowing from banks was grow- 
ing and when inflation made 
such borrowing painless. It has 
become less attractive now that 
borrowers face recession and 
now that the debts with which 
they have lumbered themselves 
lie cruelly exposed by the 
receding tide of inflation. 

There is worry today not so 
much about rapid growth of the 
global bank lending figures as 
about the prospect that they 
will abruptly shrive! up as fear 
takes hold of the system. If the 
1970s was the decade of inter- 
national lending, the l9S0s is 
shaping up ever more clearly 
as the decade of re-scheduling 


— of stretching our existing 
debts which cannot be repaid. 

On a more practical level it 
is easier to set up a framework 
for co-operation between 
diverse national agencies than 
to agree on the comon set of 
standards they should all im- 
pose. Banking systems are 
crucial to the economic manage- 
ment of many countries and 
economies have shaped them- 
selves around the diversities of 
the different .national banking 
sectors — the degree of govern- 
ment involvement, Che credit 
laws, deposit protection, the 
differing fiscal frameworks in 
which banks operate and the 
differing roles which the banks 
play in different countries. 

Capital 

Yet even given these daunting 
differences and the unencoiir- 
aging economic background, we 
believe that bank regulators 
need to muster a new determin 
ation to establish a common 
basis on which international 
banks can compete. Just as 
global recession does not reduce 
the need for a consensus interest 
rate on trade credits — to avert a 
subsidy war between exporting 
countries — so tougher times for 
borrowers do not mean that 
banks should be spared common 
standards which might prevent 
some of them being forced by- 
corn petition into excessively 
exposed positions. If moves to 
make the banking system 
sounder shift some of the onus 
of international finance onto 
other shoulders— the IMF. the 
development banks, the security 
markets, aid — this problem must 
be faced up to. 

The most obvious area for a 
concerted new- push by the 
Basle committee is in the matter 
of capital ratios. Capital is both 
a bank’s cushion against difficult 
moments and the sum on which 
it has to generate an adequate 
return. There has been a re- 
morseless tendency in this busi- 
ness to thin down the cushion 
and thereby thin down the re- 
quired amount of pro.L The 
regulators know that this trend 
ought to be stopped but their 
approach to the problem has re- 
mained altogether too polite. 

The other area in which the 
supervisors should apply greater 
co-ordinated pressure is that of 
provisions on rescheduled debts. 
Banks will preserve a closer con- 
tact with reality, and be better 
cushioned against the future, if 
they are urged to make provi- 
sions on sovereign assets whose 
credibility has evaporated. 
Loans to Poland are a very ob- 
vious case in point. 


BRITAIN’S LATEST NUCLEAR PROJECT 


The ease for 




By David Fishlock, Science Editor 


For freer trade 
in foodstuffs 


EVEN THE MOST enthusiastic 
free trader is likely to throw 
up his hands in despair if asked 
about tiie prospects of less pro- 
tectionism and fewer distortions 
to trade in the agricultural 
sector. The Organisation for 
Economic Cooperation and 
Development therefore 

deserves to be congratulated 
for tackling the issue head on 
in in a report issued by its 
secretariat this week. 

The report calls for a multi- 
lateral process designed to 
lower protection levels, and for 
an examination uf ihc many 
systems for supporting farmers 
in the OECD area with a view 
towards devising alternative 
methods less likely to en- 
courage surpluses. In so doing, 
it deals with a number of argu- 
ments frequently advanced to 
justify the existing practices in 
the industrialised world. 

Interest 

Thus the secretariat recog- 
nises that individual countries, 
or groups of countries such as 
the European Community, have 
a justified interest in the 
security of their food supplies. 
But it distinguishes between 
security of supply and self- 
sufficiency. An open world 
market actually enhances 
security of supply, witness the 
heavy Soviet grain imports 
after recent failures of the har- 
vests in the Soviet Union. 

Where the report gets down 
to the heart of the matter is in 
its emphasis on the point that 
agricultural trade is only one 
sector of world trade. General 
economic _ growth, it argues, 
would be impaired if individual 
countries continued squeezing 
down their food imports to mar- 
ginal levels. Spelt out, this 
means that agricultural protec- 
tionism, like any other kifld of 
protectionism, interferes with 
a rational international division 
of labour. 

Both on economic and on 
moral grounds there is no justi- 
fication for highly industrialised 
countries, such as tfiose in the 
EEC, engaging Jn cut throat 
competition on world markets 
against developing countries 
dependent upon their tradi- 
tional exports of can sugar. 


Quickly rising EEC sugar ex- 
ports have had the additional 
effect of causing the ILS. to im- 
pose import quotas in order to 
protect its own sugar farmers. 
It is vain to try to allocate 
blame between the two sides: 
the dispute between the EEC 
and the U.S. and that between 
the EEC and traditional sugar 
exporters demonstrates that 
there is something wrong with 
the whole system. 

The OECD secretariat accepts 
the danger that freer trade in 
foodstuffs may raise world 
prices. At first that may seem 
a paraded. It has a twofold ex- 
planation. In the first place the 
increasing level of self-suffi- 
ciency of the EEC and of other 
industrialised regions, coupled 
with their need to dispose of 
surpluses, has distorted the 
price mechanism in inter- 
national trade. Moreover, world 
prices for food bear little rela- 
tion to what the consumer has 
to pay in countries with a price 
level manipulated to support 
farmers. 

Danger 

A select committee of the 
British House of Lords last 
November drew attention to a 
somewhat unexpected s ide-€ffect 
of low world prices for food. 
They conjured up the danger 
that some less developed coun- 
tries would neglect their own 
food growing potential. 

Some developing countries 
can be faulted for devoting more 
attention to ambitious industrial 
ventures rather than to the 
immediate needs of their 
populations. But the Industrial- 
ised countries must play their 
part to help bridge the dreadful 
gap between feast and famine. 

They must open their doors 
wider to the products or the 
poor countries, and that includes 
a readiness to import food. 
Hungry countries often have 
monocultures producing export- 
able surpluses of, say, sugar, 
the proceeds of which can be 
used to attain a better balance 
of their farm and general 
economies. What is required is 
a better balance of world trade 
and the most, effective use of 
available resources. The OECD’s 
proposals should be followed up. 


N ine YEARS ago Britain’s 
Central Electricity Gen- 
erating Board made a 
big mistake. It launched, tersely 
and unilaterally, a campaign 
to replace the British-designed 
gas-cooled nuclear reactors 
with the imported U.S.-designed 
pressurised water reactor, at a 
time when its entire construc- 
tion programme was in chaos. 

It sought support neither 
from the UK Atomic Energy 
Authority, which had developed 
the reactors it was rejecting, 
nor from the Government's 
chief nuclear inspector, who 
bluntly told a parliamentary 
select conun lttee that he had 
not been consulted. It rested 
its case on a single, simple 
precept — Britain would need so 
much more electricity in the 
years to come that the PWR 
was the only system capable of’ 
guaranteeing that the demand 
could be met. 

The CEGB is still trying to 
live down this total disaster in 
public relations. Even those who 
believe that the CEGB provides 
a dependable round-the-clock 
service at prices competitive 
with, say, other EEC countries 
wince at the naivete of its 
earlier appeal. For its numerous 
enemies — and often these have 
included senior politicians — it 
confirmed their worst fears, of 
an organisation hell-bent on an 
orgy of technological adventure 
that must be a catastrophe for 
the nation. 

- Yesterday the CEGB re- 
launched its case for the PWR. 
This time its case is backed by 
the UKAEA and about 125 kilo- 
grammes of documents. Mr Fred 
Bonner, the CEGB’s “ acting 
chairman, unpaid,” as he calls 
himself, says that never before 
has the CEGB produced such a 
wealth of data in support of a 
power project 

The project is SLzeweU B, a 
single 1,100 M.w PWR it pro- 
poses to build alongside the 
1 6-year-old Size well A gas-cooled 
reactor in Suffolk. The new 
station will supply almost all 
the electricity needs of the 
sparsely populated region of 
East Anglia. The CEGB has 
produced a “ statement of case ” 
which sets out its arguments for 
introducing a PWR to the 
British electricity system, and 
for building the first at Sizewell. 

But the statement of case goes 
much further than making a 
case for Sizewell B. It also 
makes a case for starting to 
build more electricity capacity 
in Britain, even when there is 
surplus capacity today; and 
more specifically a case for 
building present-day nudear 
reactors rather than, say, more 
coal- or oil-fired plant, or relying 
on wavepower or waiting for 
nuclear fusion to come. 

In short. It is a document that 
tries to anticipate every argu- 
ment likely to be voiced against 
the Sizewell B project during a 
public inquiry starting next 
January. 

The CEGB failed in its earlier 
attempt to win acceptance for 
the PWR for several reasons, 
of which its failure to win the 
confidence of the Government’s 
nuclear inspectors was perhaps 
its most serious error. This 
time it has leaned over back- 
wards to take the nuclear in- 


Advocates and opponents 
of nuclear power in 
Britain are limbering up 
for a major verbal 
confrontation. The 
battleground will be a 
public planning inquiry 
early next year into the 
Central Electricity 
Generating Board’s 
proposal to build its first;"- j 
pressurised wafer 
reactor. To support its 
case, the CEGB 
yesterday published an 
unprecedented wealth— 
of data, pictured right. 
around Mr Brian George, 
its PWR director. 



spectors into its confidence. As 
Dr Walter Marshall, chairman 
of the UK Atomic Energy 
Authority, was telling nuclear 
engineers in London earlier this 
week, it is not the custom of .the 
nuclear inspectors to express joy 
and pleasure at designs they are 
offered. "The best we can hope 
for is that they will not express 
criticism." So. although the 
CEGB cannot expect the in- 
spectors to say "it is safe,” it is 
very confident that later this 
summer they will say they have 
no objections to Sizewell B 
going ahead. 

The biggest safety hurdle — 
some even within the CEGB 
were calling it the Achilles’ 
heel — was safety of the reactor 
pressure vessel the 435-tonne 
steel pot enveloping the highly 
radioactive nuclear fuel. The 
problem was whether the pot 
could be inspected initially and 
throughout a 35-year life in 
such a way as to guarantee the 
detection of any flaw of signifi- 
cant size before it presented a 
serious danger. 

But within recent months the 
most eminent sceptics— among 
them Sir Alan Cottrell, former 
government chief scientific ad- 
viser — have said that the latest, 
very elaborate proposals for 
ensuring pressure vessel in- 
tegrity settle their doubts. 


Opponents of nuclear energy 
in . general and Sizewell B in 
particular recognised some 
while ago. that the care with 
which the CEGB was preparing 
its case this time made it less 
likely that they could mount a 
convincing case against it on 
safety. As Mr Brian George, the 
CEGB’s director of the PWR 
project, claimed this week, 
“there is absolutely no relaxa- 
tion of safety standards in 
order to - introduce the PWR 
into this country.” 

Increasingly in the last year 
or two opponents have, sought to 
challenge the costs .of nuclear 
energy generally, and of Size- 
well B specifically. They have 
claimed that governments which 
support nuclear energy conceal 
large portions of the cost so that 
they are not loaded directly on 
to the electricity industry.' And 
they have - claimed that so 
greatly have new safety provi- 
sions in the last decade in- 
creased the capital cost of 
nuclear stations, and particu- 
larly the PWR, that nuclear 
stations can no longer compete. 

The table below, adapted from 
the statement of case, compares 
estimates made by the CEGB 
and the National Nuclear Cor- 
poration for current and new 
coal-fired and nuclear construc- 
tion projects. (Oil is omitted 


since the CEGB can foresee no 
circumstances under which it 
might build another big oil-fired 
plant) 

The most striking difference 
is between the estimated costs 
of Sizewell B and the British- 
designed -advanced gas-cooled 
reactor- (AGR).- Notwithstand- 
ing all those extra safety provi- 
sions — for the pressure vessel 
and second-containment' for in- 
stance — each casting a few 
million pounds, the British PWR 
works out over 20 per cent 
cheaper per Kw sent out than 
a new AGR. 

The big differences lie in the 
civil work costs of the AGR. 
vastly bigger because it employs 
a much “thinner" coolant and 
needs so much more of it, and 
the concomitant heating and 
ventilating costs. Also, the 
nuclear steam supply system— 
that is.- the reactor . itself — is 
three times as expensive for 
the AGR because it is much 
more complex in design and 
erection and two are needed to 
match one PWR. 

The CEGB has examined five 
quite different sets of economic 
assumptions, from a high UK 
economic growth (2.6 per cent 
average to the end of the cen- 
tury) to a low and unstable 
growth rate. It concludes that 


whatever the circumstances 
turn out to be, SizeweH B will 
still prove a “superior economic 
investment to an AGR or a 
coal-fired station.” 

Its case Is founded not on 
the replacement of coal by 
nuclear energy — in fact, it en- 
visages substantial growth in its 
coal burn to meet the higher 
rates of economic growth— but 
the' security of a diversity .of 
fuels, now oil is no longer com- 
peting: CEGB relied on coal for 
84 per cent of its electricity 
last year. TTias dependence wili 
fall with three new AGR 
stations coming on-load; but 
only slowly if experience, with 
Hinldey B — its first AGRs, 
started in 1976 but still only 
showing 54 per cent a vil ability 
last year — is any guide. 

It argues that by tbe 1990s, 
when Sizewell B is scheduled to 
come on-load, it will be starting 
to mire dts first nuclear stations, 
which first came on-load in 1962. 
So tbe first three or four PWRs 
will do no more than maintain 
the nuclear capacity. 

The diversity argument has 
merit even if nuclear power is 
marginally more expensive than 
coal. And the case for the PWR 
rests on a capital saving of 
about' £300m per station com- 
pared with the AGR. On this 


BRITISH CAPITAL COST ESTIMATES FOR GENERATION 



(March 1982 prices fm) 




COAL 

PWR 

AG K 


Drax 

New Coal 

Sizewell B 

Heysham 2 

New AGR 


3x660MW (TG) 

3x660MW(TG) 

lxl200MW (R) 

2x660MW(R) 

2x660MW (R) 




2x640MW (TG) 

2x660MW (TG) 

2x660MW (TG) 

COST COMPONENT 

1875 MWso 

1875 MWso 

1110 MWso 

1230 MWso 

. .1230 MWso 

Civil engineering and building 

• 202 

220 

223 

313 

293 

Boiler/nudear steam supply system 

368 

368 

139 

584 

562 

NNC costs 

— 

— 

213 

113 

91 

Tu rbi n e-g enerato r 

204 

204 

130 

117 

717 

Other mechanical plant 

68 

100 

83 

50 

50 

Other electrical plant 

83 

106 

95 

138 

138 

CEGB Engineering 

56 

65 

31 

56 

45 

Subtotal 

981 

1063 

914 

1371 

1296 

Start-to-finish allowance 

— 

160 

183 

— - 

260 

Risk margin 

99 

— 

— 

135 

— 

Construction period extension 

— 

22 

50 

— 

34 

Total cost 

1080 

1245 

1147 

1506 

1590 

£/kWso 

576 

664 

1033 

1224 

1293 

Key; TG= turbo-generator R = reactor; sd = 

=sent out; NNC " National Nuclear Corporation 



Source: CEGB 


basis the 'nation coud find it 
very hard to justify another 
AGE. - - 

r But do opponents of nudear 
energy have a point, when they 
claim that nuclear energy.' if 
properly -costed, proves to be 
dearer than coal? If so, it should 
certainly . discourage Britain 
from following the French, now 
generating SB per cent of their 
. elrotridty from nuclear reactors 
(mostly PWRs) and expecting 
to reach 70 per cent by 1990. 

For example. Professor Jara- 
Jeffeiy, ■ a- crystalographer at 
Birkfoeck College, London, writ- 
ing in Energy Policy this month, 
concludes on- the basis of his- 
cal analysis of CEGB figures, 
that : "Nuclear power has not 
been economic, is not economic 
and is likely to get more un- 
economic in the future.” 

But Professor Jeffery bases 
this conclusion, on prices for 
fuel both the CEGB and the 
UKAEA reject as. quite unrealis- 
tic. He assumes that, because 
of a deal struck between the 
CEGB and the National Coal 
Board, in 1979, that coal prices 
will remain steady in real- 
money terms. The CEGB dis- 
misses this as impossible, given 
that the NCB expects to have to 
invest heavily <in new mines 
just to maintain present out- 
put. At the same time Professor 
Jeffeiy is assuming that the 
nuclear industry has grossly 
underestimated what it will be 
charging for nuclear fuel. 

Mr Bonner believes that the 
statement of case has taken 
account of . the wide-ranging 
criticisms of CEGB costing, not 
only by Professor Jeffery but 
also by the Monopolies Com- 
mission. He observes that the- 
CEGB’s critics have, cbosen to 
base tbeir case not on a variety 
of very different scenarios but 
on a single set of assumptions 
— in the case of Professor 
Jeffery's critique, on low eco- 
nomic growth, a high degree of 
energy conservation and a big 
drop in electricity demand. 

As -Mr Bonner put it yester- 
day; “It's no use looking for a. 
number which happens to be 
the one that makes the benefits 
we claim for nuclear power dis- 
appear” For the nuclear indus- 
try this defence will eyoke 
memories of the 1955 White 
Paper on Energy, when the 
Government argued that the 
difference in post between coal- 
fired stations and the nuclear 
stations it proposed to build 
for the. first time was a certain 
number— it happened to be a 
ha'penny per unit— which the 
document called the "plutonium 
credit” 

Such critiques of the econo- 
mics of Sizewell B as have been 
published so far are clearly 
identified with opponents of the 
project They include the Anti- 
Nuclear Campaign, one of the 
4.000-odd registered objectors, 
which Ls expected to base its 
case on nuclear costs. Sir Frank 
Layfield QC, the inspector 
appointed for the Sizewell ' B 
inquiry, has yet to announce 
who will be his assessors. Since 
energy economics may well 
prove a more contentious issue 
than the technicalities of safety, 
the inspector may need the help 
of a senior economic analyst as 
assessor to help pick his way 
through this minefield. 


Men & Matters 


Penny Lane 


Not surprising really that 
Sears Holdings, the retailing 
group with ambitions now to 
expand into entertainment, 
should look first at the possi- 
bility of buying Northern Songs 
and its stock of Beatles’ hits. 
Sears chief executive Geoffrey 
Maitland Smith was once Paul 
McCartney’s accountant. 

While a partner in accoun- 
tants Thornton Baker during 
the late 1960s, Maitland Smith 
looked after McCartney's 
interests during the complex 
and often bitter legal wrangles 
of the Beatles' break-up. It was 
then that Lord Grade bought 
Northern Songs, which owns all 
the Lennon-McCartney titles, 
for ACC for £lOm. 

Maitland Smith remained 
McCartney's financial adviser 
until 1970, the year he joined 
Sears. And his interest in the 
ex-Beatle’s music is stfii strong. 
Marvellous songs," he says, 
which people are still hum- 
ming and will go on humming 
for years to come.” 

When it seemed that Grade 
might be open to bids for the 
business last year — and re- 
portedly rejected offers from 
McCartney and Leonnon's widow 
Yoko Ono — Maitland Smith 
made inquires but got no' 
response. 

He had hopes then for re- 
newing bis association with 
McCartney in a revival of some 
of the old albums. "And if 
they* come on to the market 
again at a reasonable price, we 
would still be interested,” he 
says. 


party chatter. Professor Anne 
Krueger, aged 47, an American 
economist, is away in Scan- 
dinavia doing a job. 

She brings with her tu the 
hank’s top tier a strong inter- 
national reputation for speak- 
ing up for the fledgling 
economies of developing 
nations, with special emphasis 
on exports as the engine of 
growth. 

In a paper given before she 
knew she was getting the job 
she argued that the World 
Bank—" one of the more 
rational international institu- 
tions " she called it— had used 
its limited resources wisely and 
so improved the growth 
prospects of developing 
countries during the last 25 
years. That did not mean.tbefe 
was no room for improvement, 
she added tartly. 

Her experience includes 
work with the economies of 
Turkey. India, Brazil. ,\nd 
South Korea, and she has 
served as a senior consultant 
and adviser on development and 
international issues to a 
?, u I riber of agencies in both the 
llS. and developing countries. 
What she had learned, she said 
recently, was that developing 
countries needed to have far 
more contact with each other 
than they do at present so that 
they could profit from each 
other's experiences. 


supplying the cherries for dunk- 
ing. Since then the company 
has become Europe's leading 
producer, importing millions of 
cherries from Italy and Spain 
and even exporting about a 
quarter of them back to the 
Continent for cocktails there. 

With the sweet-tooth largely 
satisfied, chairman Tony Opie 
is now turning to the drier side 
of the market. Opie has 
acquired Carter’s Lemons of 
Maidstone which already pro- 
vides pubs and restaurants with 
26m slices of lemon for swiz- 
zling a year. 

The new Fruit cocktail will 
lift Opie's turnover to more 
than £2m. 


A specially-designed disinte- 
grator is aboard HMS Invinc- 
ible. off the FaJklands, and 
HMS Warrior, the operations 
control centre at Nortfiwrtod, is 
similarly grinding its secrets 

away. 

Even the Russians have 
bought one — and Dext week 
Volumatic is staging a demon- 
stration at the U.S. Embassy in 
London. 


Fruit juice 


First lady 


Whether Tom Clausen, who 
took over as president of the 
World Bagjr last summer, has 
broken with tradition or started 
a healthy new style by 
appointing the bank's first 
woman vice-president is a good 
debating point for Washington 
dinner parties this week. 

Meanwhile, the object of the 


Shifting their business from 
breakfast to the cocktail hour 
has turned out profitably for the 
Opie family of Sittingbourne. 
Kent. 

Bennett Opie. the company 
founded in 1880. by the epony- 
mous Cornish tin miner who 
came to London in search of 
other work, began by catering 
for the traditional English 
breakfast of bacon and eggs. It 
Is -siiM a UK selling agent in 
the bacon trade. 

But no sooner had cocktails 
become fashionable in the 
1920s, than the Opies were 


Keeping secrets 

The security rating of shredders, 
it seems, is in tatters these days. 
The rot first set in when the 
shredded contents of Spiro 
Agnew’s dustbin were pieced 
together with unfortunate con- 
sequences for his political 
career. When Iranian siudents 
embarrassingly reassembled U.S. 
embassy documents in Tehran, 
that was the end. 

For those with real secrets to 
dispose of now, disintegrators 
are the thing. They "come in 
every size from a £3,000 office 
model to £60,000 monsters, that 
can turn a ton of paper to dust 
in an hour and chomp their way 
through printed circuits . and 
hard computer discs. ' • • 

All of which means big busi- 
ness for Volumatic of Coventry, 
the retail security company 
which imports disintegrators 
from the U.S. "It’s a simple 
business piecing . .together 
shredded paper if you want the 
Information enough,” sa*ys tech- 
nical sales executive ' John 
McIntosh. “First you. sort the 
paper by colour, then by weight, 
and. then by print density. 
With disintegrators, that's im- 
possible.” 

The lesson has not beett lost 
on the Ministry of Defence 
which is buying the machines- 
as fast as its. budget will allow. 


Word perfect 

While 200 members of the 
world’s Press waited in the 
lobby of the Finlandia Hall in 
Helsinki yesterday morning. 
Finance Ministers and central 
bank governors from the top 
ten industrial powers were 
struggling with the journalist's 
nightmare— pursuit of le mot 
juste. 

To officials at the Inter- 
national Monetary Fund meet- 
ing. the old adage about a com- 
mittee-designed horse seemed 
appropriate to Ministers design- 
ing a conwnuitiqud on unen> 
ploymenL 

The officials original draft 
that " the unemployment prob- 
lem is becoming acute ” was re- 
jected by the French Finance 
Minister Jacques Detor as be- 
ing too weak. But after exten- 
sive discussions of different 
formulae, including “dramatic- 
ally acme," agreement seemed 
to founder on fthe- rocks oif in- 
elegance or lack of punch. 

At last, after 20 minutes. Sir 
Geoffrey Howe . came to the 
rescue with a typically British 
compromise: “increasingly dis- 
turbing." 

This phrase proved so accept- 
able that the IMF’s managing 
director, Jacques de Larosiere 
adopted it for &is speech a 
few hours later to the 400 dele- 
ga les at the Fund’s interim com- 
mit lee meeting. 

As one delegate remarked: 

“ You may think this is a great 
waste of time for a couple of 
words, but there are big issues 
behind these nuances."- 



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By Anthony Harris- 


B2> 


THERE IS a familiar partem 
in bankruptcies. Tirst a bor- 
rower sets into cash flow 
problems, and bis borrowing 
accelerates. After a time, the 
lenders become concerned; new 
financing is agreed on condition 
of a change in management 
policies. These changes produce 
some improvement, but not 
enough, and after a further 
interval lenders decide not to 
throw any more eood money 
after bad. Since fhp borrower 
cannot survive without con- 
tinued cash injections, collapse 
ensues. 

This is a familiar history in 
corporate affairs, from Rolls- 
Royce to Stone-Plntt. and after 
every collapse there is liable 
to he a hot. though brief 
debate. It is The lenders who 
arc accused of precipitaiins the 
crisis. They were shon-sichicd, 
their policies suddenly changed, 
with a little more accommoda- 
tion they would have seen their 
money back. 

These arguments never seem 
to stand up to a cool examina- 
tion of the fundamentals; 
analysis usually convicts the 
Jendera of having hcen. on the 
contrary, ton soft and too 
optimistic. Their losses would 
have heen much smaller had 
they recognised a fundamentally 
hopeless situ -.I inn much r.irher. 
However, the fact that rhe 
arguments are so often 
rehearsed does underline one 
important truth: the final crisis 
is precipitated not hy the bor- 
rower but hy the lender. T; is 
he who recognises risk, who 
pulls tlie nig out. 

In other words, it would ho 
relatively easy to forecast 
financial disasters if you could 
examine the actions of the 
lenders. The books of the 
borrower may show an un- 
changed or even improving 
siiuaiinn; it is the change in 
/ending policy or perhaps only 
in credit rating which counts. 

Sovereign lending lo countries 
Is usually thought to be some- 
thing quite different National 
defaults have been virtually 
unknown for the last 50 years, 
and even a country like Nica- 
ragua. whose exports pay for 
Jess than a tenth of its imports 
of goods and services, has debts 
which are unblushingly listed 
as assets by the lending institu- 
tions. At the moment. H is true, 
they are hardly prompt assets: 
but it seems to be assumed that 
given time for recons miction 


USSMJton 


INDUSTRIAL DEBT SERVICE BURDENS 

(for both public and private Motor bonownm) 


BANK FLOWS 
(All mxuril.-es) 


USSbBfanl 

MEDIUM and LONG TERM DEBT 
(All creditor*, data as used t50| 

n traditional - 
debt service ratios) 


TERMS OF TRADE FOR TOMMODnY PRODUCE 
160 


[ { bt?rgnt 



1978 1979 1980 1981 


1978 1979 1980 1981 



1972 1973 197* 1975 1976 1977 1978 1979 1930 1981 


and a resumption of normal 
trading, everything will come 
nut right. 

Meanwhile, however, a coun- 
try in this position, like a 
company r.i the throes, depends 
or. a continued large flow of 
crertii to perform this recon- 
struct! or.. The yiimc of sovereign 
credit, like the game of cor- 
porate support, can continue 
only until the music stops. 

Has the music already 
stopped? The global figures 
including short-term credit, 
recentfy published by AMEN, 
suggest that it may have. There 
was virtually no ne; expansion 
cf international bank credit 
during lflfil: new lending was 
financed almost 190 per cent by 
receipts of capital and interest 
on past loans — or reflected 
“ lend Li s " to cover payments 
not made. Some time during 
(9S1. by most accounts, the 
market as a whole began to 
contract. The rug has been 
pulled. 

The early signs of the ensuing 
crisis are visible, but they do 
not look particularly worrying. 
Hungary has experienced great 
difficulty in obtaining commer- 
cial credit since the onset of the 
Polish crisis, but has rejoined 
the International Mon ei ary 
Fund and has been promised 
support. Meanwhile a group of 
central banks, working through 
the Bank, for International 
Settlements in Basle, has 


arranged bridging finance. Nor- 
mal service will, no doubt be re- 
sumed as soon as possible. 

However, this appearance of 
normality may be very deceptive 
—* not so much In the case of 
Hungary or Brazil, for example, 
relatively dynamic economies 
which require credit lo finance 
genuine development. but 
among the growing number of 
economies which are simply 
borrowing to finance current 
consumption. This description 
covers countries like Poland and 
Nicaragua, suffering pulitic.il 
disruption, to countries such as 
Argentina and Romania with 
grossly inadequate economic 
management, and above all to 
commodity producers. 

It is the commodity producers, 
represented in tiio run-up to 
Helsinki by the Group of 24, 
who have been the worst suf- 
ferers from world disinflation. 
Until the change in U.S. mone- 
tary policy made disinflation a 
reality, they did remarkably 
well, despite many doom-laden 
forecasts of the disaster which 
might be precipitated by high 
oil prices. Other commodity 
prices rase ton, international 
credit was extremely cheap in 
real terms, and the group as a 
whole grew unaccustomedly 
fast. 

Now, however, their situation 
has reversed savagely. Their 
terms of trade have deteriorated 
very sharply, their sales volume 
is also depressed, while the cost 


of borrowing to cover ihe col- 
lapse in their earnings has re- 
mained at the same high nomi- 
nal rate of about 15 per cent. 
With earning power falling even 
in money terms, the real interest 
rate for a commodity producer 
may well be over 20 per cent. 

Unless the underlying 
situation is quite quickly 
reversed, with a substantial fall 
in interest rates and a rise in 
market demand at improved, 
terms of trade, debt service 
burdens for a number of such 
countries could rapidly 
become literally insupportable. 
Naturally the Group of 24 is 
calling for such an improve- 
ment. a world revival initiated 
in the developed countries by 
policy changes producing lower 
interest rates, and meanwhile 
a large injection of concessional 
aid. 

Even if the developed 
countries were listening atten- 
tively, which they are not, it is 
hard to see how such an out- 
come could he contrived. If 
disinflationary monetary policies 
were to be abandoned, interest 
rates would probably rise rather 
than falL If the fashionable 
route of tighter fiscal policy is 
adopted to secure lower interest 
rates, the developed countries 
would tend to a higher current 
surplus, as Japan and the UK 
demonstrate. 

The developed countries, in 
short, are preoccupied with 
their own policy dilemmas, as 


Xfsr‘/n Sj -ms* 


the recent OECD discussions 
have shown. In one rasped. The 
choices may now be becoming 
less baffling. Fur some years, 
while exchange markets have 
been dominated by capital 
movements, floating exchange 
rates have followed a perverse 

pattern in which inflationary. 
dcticit-nddcR econnmie ; , had the 
strongest exchange rates 3usi 
because their nominal interest 
rates were high. This gave the 
whole system an extra 
deflationary twist. since 
soundly-performing economies 
were forced fr« protect their 
currencies either through high 
interest rates or, as in the case 
of Japan, by excessive trade 
surpluses. 

It is possible, but far from 
certain, that the sudden dis- 
appearance of the Opec surplus 
— the same event which is lead- 
ing to a contraction of Liter- 
national bank credit— -will pro- 
duce a very helpful change in 
the exchange markets. If 
exchange rates increasingly re- 
flect underlying trade and in- 
flation performance, as the 
theory always assumed they 
would, then strong economies 
could more readily adopt more 
expansionary policies. At the 
tame time the improved terms 
of trade, as seen from the point 
of view of the developed coun- 
tries, will improve profits and 
real incomes, reinforcing 
expansion. 

This is the optimistic 


scenario; readers must judge 
for themselves whether it is 
any more plausible than the 
rest of the ions series of false 
dawns which has been hailed 
j:j /he last eovpls of years by 
‘ i he ni'jre bullish forecasters 
:.:*d puliL'cCians. 

Even ca this scenario, how- 
ever. it is a very open question 
whether the rescue will arrive 
in time. The picture in the 
credit market remains very 
omiitou* — “the period of maxi- 
mum risk." as it was charac- 
terised this month in the Eanfr 
C red is A»;c/vit. 

It is essentially a liquidity 
crisis, in which disaster could 
br caused not only by the 
evident reluctance of banks to 
throw indefinite good money 
after bad. but by decisions 
among borrowers that default — 
:■ deliberate decision to do 
without borrowing m future — 
ir, less painful than meeting 
even rescheduled obligations on 
debt that grows inexorably in 
real temv=. Voluntary default, 
or at least a refusal to pay com- 
mercial interest rales, is a pos- 
sibility very much alive in the 
minds of some central bankers. 

If disinflation and credit con- 
traction are indeed in The lea- 
leaves— and Brian Reading 
point* fo a host of disturbing 
parallels between the present 
eyrie and the 1930s in his cur- 
rent Monthly Monitor’— then it 
is unlikely that any change in 
macrn-ecinomic policy ran 
prevent u. Major contractions 
are essentially a matter of finan- 
cial psychology, and arise when 
risk outweighs reward as an 
incentive. 

The most useful palliatives, 
then, are likely to be financial, 
tile equivalent of a corporate 
reconstruction. Flows of partici- 
pating investment fund®, as 
urged by Mr Donald Regan, the 
U.S. Treasury Secretary, could 
effectively de-gear some bor- 
rowers. A greatly enlarged flow 
of official and DIF capital, as 
is cuietlv urged in Thread- 
needle Street, could handle 
more difficult cases. ?Jeanwhi!e 
some 1 o«i ns would have to be 
written off. What will r.ot work 
is the present regime of 
reduced and cautious lcndin.g, 
under the implied motto: “Nor- 
mal inflation will be resumed 
some time." Perhaps it won't 

* International Advisor ? Associates. 
121 Deioe House. Barbican. EC2. 


Lombard 

A naval war in 
ancient Greece 


By Reginald Dale 


THE MASSIVE modern fleet 
was in a high state of efficiency 
and had cost the state a great 
deal of money. It was equipped 
to be away for a long time 
and was ready for both naval 
warfare and the landing of an 
invasion force on hostile terrain. 
It carried 4.000 Heavily armed 
and highly trained soldiers. It 
was bound for a distant island 
in pursuance of a colonial 
dispute- 

When it left port, a vast 
crowd assembled to see off their 
friends, relatives and sons. 
“They came full of hope and 
full of lamentation at the same 
time, thinking of the conquests 
that might be made and think- 
ing. too. of those whom they 
might never see again, con- 
sidering the long voyage on 
which they were going from 
their own country. 

“At this moment when they 
were really on the point of 
parting from each other with 
all the risks ahead, the danger 
of the situation came more 
home to them than it had at 
the time when they voted for 
the expedition. Nevertheless 
they were heartened with the 
strength they had and with 
the sight of the quantities of 
every kind of armament dis- 
played before their eyes.” 

Portsmouth. 19S2? No 
Piraeus. 415 BC, in the words 
of Thucydides, as the first 
wave of the tragically doomed 
Athenian naval task force set 
sail for Sicily in the dying glow 
of empire almost exactly 2.400 
years ago. The fleet, and its 
subsequent reinforcements, 
carrying the flower cf Athenian 
youth, never came back. 

The Athenian fleet sailed 
against what it thought would 
be inferior opposition at a bad 
time of year— it was already 
mid-summer — in support of a 
small conununity (Leontini) 
that had been overwhelmed by 
military aggression by a more 
powerful neighbour (Syracuse). 
It was stronger than the opposi- 
tion in terms of shi%» and had 
a tough force of hoplites (read 
marines), but was weak in 
cavalry (read air cover). 

It gathered at the staging 
point cf Coreys (read Ascen- 
sion Island) and thouchr it could 
rely on the support of numerous 
allies of similar culture and 
background along the way. it 
turned out that in many cases it 
could r.ot For their part the 
Syracusans for a long time 


believed that Athens did not 
“mean business.” 

The Athenians had some 
initial naval successes, while the 
Syracusans rallied the support 
of their Sicilian and Italian 
allies in the region (read Organi- 
sation of .American States). The 
Syracusans were not used to 
war. while the Athenians were 
far more experienced. But the 
onset of bad winter weather and 
leadorshio oroblems. delayed a 
full-scale* Athenian attack. They 
realised they needed to send 
back to Athens for more hop- 
lites (marines) and cavalry 
(Harriers). 

Hermocrates. the snn of Her- 
man. told liis fellow- Syracusans 
not to be afraid of the daring 
and power of the Athenians. 
“They will not be able to do us 
anv more harm than we can do 
to them, and the fact that they 
are coming with so large a force 
is far from being a disadvan- 
tage to us. Indeed, it is much 
better that way. when one con- 
siders ihe rest of the Sicilians 
< Latin Americans), who will be 
terrified, -and therefore all rhe 
more willing to become o ur 
allies. . . , 

“And if in the end we defeat 
them or force them to go back 
without having attained their 
objects (for I am certainly 
under no apprehension that they 
will get what they expect to 
get), that will be a very’ 
glorious action indeed for us, 
and one which, in my opinion, 
is by no means unlikely. There 
have certainly not been many 
great expeditions. either 
Hellenic or foreign, which have 
been successful when sent far 
from home.” 

Nicias, the reluctant com- 
mander of the task force, had 
warned against the expedition 
on the grounds that closer to 
home there were already rebels 
in Chalridice (Northern Ire- 
land) and powerful Pelopon- 
nesian enemies led by Sparta 
(Moscow and the Warsaw Pact) 
and said that the fleet should 
not be diverted from its normal 
alliance (Naio) role to distant 
waters. 

To cut a long story short, the 
whole thing was the greatest 
military fiasco of the ancient 
world. * The modern world, of 
course, does not repeat classical 
history. 

Quotations are ta^en from 
PcnGwii Classics. Thucydides' 
“The Peloponnesian \Ycr,“ trans- 
lated by Rer Warner. 


Letters to the Editor 


The Falklands: future support for the islanders 


From Mr J Dadicell 

Sir.— David Marsh’s Lombard 
column (May 7) suggests he is 
relying on the Argentine, not 
British, version of facts; as 
someone who has visited the 
Falklands, may 1 correct the 
position? 

Mr Marsh reasonably asks 
what will happen after the 
military operations and enquires 
whether Argentina will ** con- 
tinue to provide medical trans- 
port, fuel and education 
services. ” Mr Marsh ought to 
have found out that the 
i si id tiers are virtually self- 
sufficient for medical and 
education sen-ices. Doctors 
travel round the islands and 
there is a good hospital in Port 


Stanley where ordinary opera- 
tions are carried out. Only 
the most complex of opera- 
tions are carried out in 
Argentina and could as 
easily be done in Chile or 
Uruguay. As for education, there 
is a full schooling system. 
Argentina has offered facilities 
nn the mainland but very few 
children have taken them up: 
when they have, it is usually at 
English schools in Argentina. 

Argentina does indeed pro- 
vide transport services but only 
for people;, goods come and go 
hy sea from Tilbury. Full air 
fares are paid and rhe service is 
not subsidised. Before this ser- 
vice began, there was a 
passenger ship service to 
Montevideo: this could be 


restored and aJriinks developed 
with Chile or Uruguay. The 
islanders are not dependent on 
Argentina for transport. 

It is also true that Argentina 
provides fuel — but not all fuel. 
Diesel, for example. Is not 
supplied. Fuel can come from 
places other than Argentina as 
indeed it did before Argentina 
was given a monopoly supply 
contract. 

Would you please ask Mr 
Marsh (and indeed others cf 
your staff) to talk to islanders 
(a number of whom are in the 
United Kingdoml before again 
writing about the Falklands in 
such an ill-informed manner? 
John Dodwell, 

8 Burnside, Hertford, Herts. 


The question of Argentina’s nuclear capability 


From Mr D. Taylor 

Sir, — Your Science Editor 
(May 4) contends that the 
claims made in the BBC TV 
Newsnight film “Germany and 
the Argentine bomb" are un- 
substantiated and easily dis- 
missed in knowledgeable circles 
in Britain. This is precisely the 
opposite of the truth. The 
central claim of the pro- 
gramme, that Argentina has the 
capability soon to build a 
nuclear weapon and that this 
capability has been assisted by 
help from West German scien- 
tists, has been supported pub- 
lirly by nuclear experts in 
Britain, the U.S. and Europe. 

In making the programme. 
Newsnight sought advice pri- 
vately from a number of senior 
nuclear experts with experience 
in both the military and civilian 
fields in Britain and the U.S. 
Their advice and guidance con- 
firmed the findings of the pro- 
gramme and in some cases 
were absorbed into it. 

The programme did no< con- 
clude, as you say, that the only 
reason why Argentina should 
wish to reprocess spent nuclear 
fuel was to extract plutonium 
for a nuclear weapon. We did 
suggest that this was the most 
plausible explanation for the 
way their industry was being 
developed- We pointed out that 
Argentina’s new reprocessing 
plant at Ereiza will not be 
under international safeguards, 
that it will produce enough 
plutonium to make up to 10 
nuclear weapons a year, and 
we drew attention lo Argen- 
tina’s self-declared "right" to 
explode a •’peaceful" nuclear 
device. Almost all experts 
accept that a “peaceful " device 
can readily be put to military 
use; the director of the UN 
Disarmament Agency considers 
Argentina capable, of exploding 


a nuclear bomb within two 
years. 

Contrary to your report, we 
did not suggest that Argentina 
had kept secret her intention 
to reprocess spent nuclear fuel. 
What we did say is (hat Argen- 
tina has provided no details of 
the Ezei 2 a project, least of all 
tn the International Atomic 
Agency, supposedly the world’s 
nuclear watchdog. Further- 
more. an Argentine official ad- 
mitted to us that this plant is 
not m be covered by inter- 
national safeguards. As recently 
as last week the chairman of 
the Argentine Atomic Energy 
Commission. Admiral Castro 
Madera, referred to widespread 
pressure to stop construction of 
the rcproL-essins plant or place 
it under safeguard?. He said 
this amounted tn international 
blackmail, and that Argentina 
would push ahead regardless of 
world opinion. 

The question of safeguards is 
a vital but complex issue. Wp 
have talked id board members 
nf the IAEA and present or 
recently retired inspectors who 
suggest that many of the IAEA 
safeguards are simply in- 
adequate, by virtue of their 
infrequency, the necessity of 
co-operation from the nation 
under inspection, and the 
ability oi a nation to plead in- 
ternational tension as a reason 
for non-inspection. 

Your report implies that the 
West Germans achieved a satis- 
factory agreement on safe- 
guards when it sold the Argen- 
tines the Atucha H reactor. The 
real point is that the West Ger- 
mans' competitors, the Cana- 
dians, were insisting on full 
scope safeguards, which would 
have meant not only Atucha II 
coming under inspection, hut 
all Argentina's other nuclear 
installations and programmes. 


including ihe new reprocessing 
plant at F.zeiza. Admiral Castro 
Madera declared in us in his 
irvlerview for ihe programme : 
“They (the Canadians) asked 
for more warranties, more safe- 
guards; this opposed the philo- 
sophy of Argentina . . . that 
very stubborn position of 
Canada obliged us to choose 
another competitor.'* 

As another contributor to the 
programme, W. Epstein, former 
director of the UN Disarma- 
ment Agency, observed: "How 
else ran that stance he re- 
garded except with suspicion? " 

David Cnxon Taylor 
(Producer. “Germany and the 
Argentine bomb”) 

BBC. Wood Lane, U’lA 


A choice of 
notepaper 

From Ann Lander 

Sir,— My first reaction to the 
"Thatcher letter" (page 1. 
May 10) was to treat It with the 
contempt it deserved, i.e. ignore 
it 

But on second thoughts, per- 
haps it should be pointed out 
to Mr Bob Crycr that as Mr 
Dennis Thatcher, through no 
fault of his own. finds himself 
a resident of No. 10. Downing 
Street, even on a temporary 
basis, then surely he is entitled 
to use notepaper bearing ftb 
home address. 

Are Mr Crycr's constitucnls so 
contented under Tory rule that 
he has no more important ques- 
tions to table? And has the 
House of Commons no more 
important - questions to take up 
its time? 

Ann M- Lander. 

32 Derek House, 

45 Arai Churc/i Rood, 

Hare, Sussex. 


Direct labour in the 
health service 

From the Managing Director 
Crothall Health Care Services 

Sir,— Keith Jerrome’s letter 
(May 6) on the use of contrac 
tors within the national health 
service is yet another example 
of the ill-informed comment 
issuing from trade unions in res- 
pect of private enterprise 
involvement in the public sector. 

In favour of his argument he 
cites Lady McCarthy, ex-chair- 
man of Oxfordshire area health 
authority who in common with 
Mr Jerrorae seems unaware that 
this authority has continuously 
used contract domestic services 
for the last 21 years. During this 
lime the authority has regularly 
tested the efficiency of this ser- 
vice against direct labour via 
an- open tender process and 
always found the contract situa- 
tion to be more cost effective. 

He equally infers that 
Buckinghamshire area health 
authority was remiss in its 
public duty by renewing a con- 
tract for the provision of 
domestic services at a less 
favourable cost than direct 
labour. His facts are again 
wrong. My' company has pro- 
vided contract services at Stoke 
Mandeville for the last 19 years. 
Three years ago with the co- 
operation of local trade unions, 
we took over the domestic ser- 
vices at St. John’s at a time 
when, without management and 
supervision, they were unable lo 
provide an adequate service in- 
house. This situation was 
remedied with no additional cost 
to the authority which has by 
virtue of this latest tender 
exemse been able to' provide a 
belter level of service to an 
underfunded unit, whilst pre- 
serving services at Stoke Mande- 
viUe. at an overall reduced cost 
to the authority. 

I agree with Mr Jerrome that, 
when we are considering the 
care of the side decisions should 
not be made on the basis of poli- 
tical stance or rhetoric but 
rather on actual facts based on 
realistic study of comparative 
costs. Perhaps he will therefore 
join with me in urging the NHS 
to look to the most effident use 
of its scarce resources by insti- 
gating a system whereby all 
authorities are required to test 
the cost-effectiveness of their :n- 
bouse ancillary service hy call- 
ing for competitive tenders 
from private enterprise and 
direct labour at regular, speci- 
fied intervals. At the moment, 
this is only done in the 2 per 
cent- of cases where contracts 
already exist 
J. R. Broadley, 

PO Bo z 116, 

34-44 Clifton Street, EC2. 



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Financial Times Thursday. May 13 1982 


Companies and Markets 


UK COMPANY NEWS 


Stronger dollar helps Coats Patons 


THE HARDENING of the U.S. 
dollar was reflected in improved 
profits for textile manufacturer 
Coats Patous from North and 
South America. Overall group 
pre-tax figures showed a 23.5 per 
cent rise From £65.9m to £74.Sm 
for 1981, following the mid-year 
improvement from £26, 68m to 
£28.15m. 

Sales for the year increased by 
£11 Im (16-1 per cent) to 
£SQ0.4m. Volume was down by 
£24m while price increases 
added £60m and OECD exchange 
movements £75m. Export sales 
slipped from £72m to £69m. 

On, prospects, the directors 
warn toat sales aDd margins in 
1982 are unlikely to achieve any 
major advance unless there are 
significant exchange movements. 
Trading conditions continue to 
he difficult in the UK and 
Europe and there are few signs 
of any significant upturn. 

The credit squeeze in the 
TJ.S. and Canada is beginning to 
have an effect on the group s 
sales, while the rest of the world 
is far from buoyant 

Trading profits for 1981— ■after 


depreciation — rose by . 30 per 
cent from £66.4m to £S6.4m. 
These included gains on conver- 
sion of £13m due to OECD ex- 
change movements. Overall 
trading margins improved to 
10.S per cent i9.6 per centT. 

Interest charges rose by nearly 
£6m to £19.5m. This was partly 
attributable to higher rates 
generally, but more especially to 
higher borrowing in Latin 
America at nates well in excess 
of 100 per cent Surplus on fixed- 
assets fell to a more normal level 
at just over £3m (JES-Sm). 

Tax charge was £30m, against 
£23. 5m previously. The reflected 
tax rate was -over 40 per cent 
(under 36 per cent) and this in- 
crease was largely because of 
the reduction in surplus on sale 
of fixed assets which bare no tax 
in 1980. 

Earnings for ordinary holders 
rose hy 6.6 per cent from £33-2m 
to £35.4m. Stated earnings per 
25p share were ahead at 14.7p 
< 13.9p ) , while the years dividend 
is maintained at 4p net with an 
unchanged final of 2.6p. 

Extraordinary losses remain at 


HIGHLIGHTS 


Having briefly commented on the latest Government bor- 
rowing figures Lex moves on . to look at the major corporate 
news of the ady. Royal Insurance is the latest weather victim. 
The first quarter loss of £3.5m compares with a £26.7m profit 
but things are looking better. European Ferries* profits are 
well down for the full year to the end of December, with 
profits £10m lower at £20.4m. Yet the results do show a 
substantial second-half recovery particularly from the ferries 
operation. Coats Patons has pushed up its full-year profits by 
13 per cent to £74.8m with the help of a weaker pound and a 
strong performance from South Africa. Finally Lex e xami nes 
the latest offering from Trafalgar House where profits have 
ben pushed up by £6-2m to £27 22m, thanks to an improvement 
in property and investment activities. 


European 
Ferries 
falls £8.6m 
to £21.8m 


Weather escalates Royal’s 

underwriting bill to £64m 


a similar level of £5-2m (f5,3m) 
but a rather larger part of these 
items was incurred overseas than 
in 1980. Retained profits emerged 
at £24.3m, compared with £22.1m. 

An overall exchange gain on 
reserves of £2 -3m (£11 -3m loss) 
was after charging losses of 
around £13m (£8ra) on account 
of currency movements mainly 


in Latin America. 

There was an overall cash out- 
flow of £20rn (£7.7m inflow) or 
outflow of £27 .2m (£lSm inflow) 
after exchange movements. 

Current cost results show pro- 
fits for ordinary holders of 
£12.3m <£2.4m) and earnings per 
share of 4.4p <0.9p). 

See Lex 


Saatchi & Saatchi in £24.7m cash call 


BY CARLA RAPOPORT 


Saatchi and Saatchi, Britain’s 
largest advertising agency, is 
turning to shareholders, to help 
fund its purchase of Compton 
Communications, one of the 
leading U.S. agencies. The fast- 
growing U.K. group is planning 
to raise £24.7 m hy way of a one- 
for-one rights issue at 325p. 

At the same time, the comply 
forecasting that pre-tax profits 
for the enlarged group for the 
vear ending this September 
would be not less than £5.25m 
acaiost £3.6m last year, includ- 
ing a three month contribution 
from Compton. 

Under tahe details of the acqui- 
sition released yesterday, Saatchi 
will pay S27.2m in cash for 
Compton, and then issue S3.6m of 
promissory notes to the vendor. 
Saatchi will also undertake to 
make additional payments, up to 
a maximum of S27.6m, based on 
Compton's future performance. 

The directors, including both 
Saatchis. will use the value of 
the premium they receive from 
selling their rights to buy about 
150.000 new shares . As a result, 
their stake in the company will 
fall to less than 20 per cent. 

The details of the acquisition 
of Compton and the proposed 
rights issue will be put before 
shareholders at an EGM on May 
27. Under the proposed plan, the 
S3.6m in promissory notes will 
be payable in five equal instal- 
ments commencing one year 
after completion of the deal. 
Payments on the notes will be 
scaled back if the growth in gross 
billings of Compton is less than 
3 per cent over the life of the 
notes. 

Saatchi had considered a plac- 


ing of new shares to raise the 
money, rather than a rights issue. 
The Stock Exchange, however, 
limits placiogs to 3m aod this 
was not considered an adequate 
sum. 

The Saatchi brothers. Maurice 
and Charles, hold about 32 per 
cent of the company's 8.05m 
shares, while other directors 
hold another 4 per cent The 
brothers and the directors are 
not expected to take up their 
full entitlements, and the bulk 
of their rights will be placed 
with institutions. The placed 
amount is expected to be 2.7m 
shares out of a total 2.S7m shares 
the}' could subscribe for. 

“You’d have to be very rich 
to take up their full rights,” said 
Mr Andrew Wood, a director of 
County Bank which is advising 
Saatchi. 

For the year ending this 
September, Saatchi forecasts that 
pre-tax profits will be not less 
than £5 .25m on turnover of not 
less than £251. lm. compared to 
3.6m in pre-tax profits on sales 
of £102m. Profit after tax and 
minorities a rc forecast to be 
not less than 2.52m and stated 
earnings per share not less than 
25p. Last year, the company’s 
stated earnings were l&p. 

These forecasts include a three- 
month contribution from Comp- 
ton. but Saatchi states that for 
seasonal reasons. Compton's con- 
tribution will be lower than the 
quarterly average expected for 
the year. 

Saatchi expects to pay a final 
dividend on the enlarged capital 
of not less than 4.5p. The new 
shares will not rank for the 
interim dividend of 3.5p. Last 
year, the company paid S.57p net 


The Saatchi directors and the 
management of Compton stated 
yesterday that in the longer 
term. " it will be possible to 
improve Compton’s margins." 
Some savings are expected to 
arise from the merger of opera- 
tions internationally, in addition 
to savings achieved elsewhere. 

If shareholders approve the 
deal, Saatchi's shares, which 
were suspended in March at 
415p, are expected to resume 
dealings on May 2S. 

Phillips and Drew are brokers 
to the issue. 


price a yield of around 3 per 
cent, which might go up as all 
those new shares flood into the 
market. 


Improvement 
to £356,000 
at Fundinvest 


comment 


The Saatchi transatlantic crossing 
has found its fuel. Assuming 
shareholders approve the deal, 
Saatchi is offering more of itself 
to the public with the promise 
that stated EPS will be improved, 
not diluted. The company says 
that Compton’s operating profit 
as a percentage of billing was 
1 per cent last year, compared 
with 2 per cent from similar U.S. 
agencies. Saatchi believes it can 
light the right fires under 
Compton and bring it into line 
with the competition. Compton 
also has a loss-making U.S. sub- 
sidiary and four overseas subsi- 
diaries which together turned in 
combined Josses of nearly S1.5m 
last year. Saatchi believes these 
too can come right. It further 
intends to crack down on admini- 
strative expenses and put a new 
bonus plan into effect for 
Compton account executives. All 
these things point to more growth 
for Saatchi in 19S2-S3. but a 
somewhat slower rale as the com- 
pany digests. The proposed 
dividend gives the ex-rights 


Pre-tax revenue of Fundinvest 
for the six months to March 31 
1932 advanced from £330.426 to 
£355.579 and the net interim 
dividend is being stepped up 
from 1.734p to 1.681p. Last 
year's total payment was 4.243p. 

The first-half result was struck 
on gross revenue of £405,584 
(£381,135) and was after 
expenses and interest £50,005 
(£330,426). Tax took £115,921 
(£107,103). while the net asset 
value per capital share turned 
in at 159.5p (142p at September 
30 1981) after deducting deben- 
ture stock and preference and 
income shares at their nominal 
values. 


A SETBACK of £S.58m to 
£21. 7 8m in pre-tax profits was 
shown by European Ferries for 
1951. This reflects falls in bath 
the shipping and banking and 
property divisions, which were 
only partially offset by a rise in 
harbour operations. Turnover 
moved aJ—^d from £205.22m to 
£2 55.55m. 

As predicted at the interim 
stage the final dividend is 2.1p 
net which leaves the total for 
the year down from 5.175p to 
3.1p. Earnings per ordinary 25p 
share were shown as failing -from 
12.8p to 7p. 

At the operating level profits 
fell from £30.47m to £20.3Sm. At 
tiie interim stage there were 
operating losses of £2.14m. 

A breakdown of turnover and 
profits by division shows: ship- 
ping £ 182.99m (£164.55m) £1.94m 
(£9.75m>; harbour operations 
£29. 44m (£21. 02m) £6J22m 

(£1.97m); banking and property 
£43. 13m (£19.55m) £12.23m 

(£l8.75ra). 

There was a contribution from 
associates this time of £114m, 
3 gainst previous losses of 
£114,000. 

Group profits after tax were 
lower at £ 17.06zn against £27. 19m, 
including a charge for advance 
corporation tax of £3.47m 
(£2.76m). 

Minorities took less at £1.49m 
(£4.47ra). Extraordinary credits 
were lower at £820.000, compared 
with £2. 62m, which included 
reduced profits on currency loans 
and other exchange differences 
Of £I.28m (£3.57rn ). 

Attributable profits emerged 
down at £16.39m (£25.35m). 

On a current cost basis pre-tax 
profits were shown at £10.7Sm 
(£21. 23m) aod earoinqs per share 
moved down from 7.9p to 2.1p. 

See Lex 


THE exceptionally severe winter 
weather in the UK and U.S. sent 
underwriting losses of Royal 
Insurance in the first quarter 
soaring from £18.3m to £64. lm 
and turned a pre-tax profit of 
£26.7m into a pre-tax loss of 
£S.5m. 


Investment income rose by 35 
per cent in sterling terms over 
the period from £40.6m to 
£55.1m, while life profits and 
associated companies' profits 
were also higher. But this failed 
to bridge the underwriting gap. 

However, a substantial tax 
credit enabled the group to 
record a small net profit 
attributable to shareholders of 
£4m compared with £13.9m for 
the first quarter of 1981. 

The earnings per share 
amounted to 2.1p against 7.7p. 

General insurance premium 
income worldwide rose by 25 per 
cent in sterling terms from 
£344.1m to £432.1m, with an 
underlying growth rate in local 
currency terms of 11 per cent 
The underlying growth rate in 
investment income after adjust- 
ing for exchange rate fluctuations 
and the proceeds of last year's 
rights issue was 16$ per cent 

Royal paid out £30m in weather 
claims an its UK property- 
business compared with £5m in 
the first quarter of 19S1. Thus, 
the severe winter weather cost 
the group nearly £25m in addi- 
tional claims. Around three- 
quarters of this arose on domes- 


tic property. The weather had 
much less impact on the UK 
motor account 

The net result was that a profit 
of £6.1m in the first quarter of 
1981 was turned into ah under: 
writing loss of £23 .Sm and a 
pre-tax profit of £15. 6m into a 
loss of £ll.Sm. 

However, UK business In 
general is in a downcycle, especi- 
ally io commercial lines. 'Here 
keen competition is resulting in 
a widespread reduction of 
premium rates that have become 
clearly inadequate.. 

Severe weather also hit the 
U.S. account, which suffered from 
the freak storms which hit. the 
Southern States. The group paid 
out SlOm in exceptional weather 
claims. But the general trading 
conditions in the U.S. insurance 
market continue to decline, as 
anticipated, and underwriting 
losses worsened from £8.Sm to 
£2S-7m. 

Results worsened in commer- 
cial multi-peril and automobile 
business of which only part of 
the deterioration came from the 
weather. But workers’ compen- 
sation remained profitable 

The U.S. operating- ratio 
worsened from 105.2 per cent to 
115.2 per cent, with the claims 
ratio worsening from 75.2 per 
cent to 85.4 per cent. But the 
expense ratio improved slightly 
from 30 per cent to 29.8 per 
cent. 

Premium income rose 23 per 


cent, but much of this rise was 
due to exceptional factors. Pre- 
mium growth in the U.S. is 
generally in line with the 11 per 
cent target 

The two bright spots In the 
first quarter results were the 
improvements in resuits from 
Canada and Australia — two 
territories Vhich have shown 
very poor figures in recent years. 

In Canada, the rigorous 
remedial underwriting and 
higher rating is now beginning 
to show through, with under- 
writing losses cut from £11 ,7m to 
£8.7m and pre-tax losses from 
£7.3m to £1.5m. The achieve- 
ment has meant a reduction in 
the Royal's share of the market, 
where it is the leading insurance 
company. 

There was also an improve- 
ment in Australia where under- 
writing losses were more than 
halved from £2.7m to £l.lm. and 
the territory showed a pre-tax 
profit of £700.000. Results im- 
proved in most major classes, 
particularly commercial fire. 

Business In the Netherlands 
showed an underwriting loss of 
£l:2m against a small profit last 
year, -with the commercial 
property account suffering from 
a number of large* fire losses. 

Reinsurance business showed 
reduced Tosses with an improve- 
ment in the Horae Foreign 
account In other territories,, the 
absence of large claims results 
in reduced underwriting losses. 

See Lex 


Trafalgar House higher midway 


Nth. Atlantic 
ahead but 
Interim cut 


External Inv. 
at £989,000 


Pre-tax revenue of External 
Investment Trust improved from 
£544,000 to £989,000 for the year 
ended March 31 19£2. and the net 
total dividend is being increased 
by 0.Sp to 9.8p per £1 share by a 
final of 4.Sp. 

Tax took £406,000 (£352.000). 
Asset value per ordinary share 
is given as 270-lp (S00.5p) and 
diluted at 256.9p (2S3.4p). 





Group 


Earnings per share up 38/ Q d 
Medium-term outlook positive despite recession. 


After tax revenue of North 
Atlantic Securities Corporation 
improved from £294.982 to 
£342,601 for the- six months to 
March 31 19S2 but the net 
interim dividend is being cut by 
0.75 p to lp per 25 p share — as 
previously announced the total 
will be not less than 2.75p. com- 
pared with 4.5p. 

Toe surplus was struck after 
expenses of £45.16S ( £43.354 ), 
debenture and other interest 
£67.742 (£95.9.31) and tax of 
£229.691 (£155.697). Attributable 
profits totalled £337.112 
*£337.946), from which dividend 
payments absorb £183,580 
(£319.825). 

Gross revenue advanced from 
£632.928 to £579,713. 

Net asset value Per ordinary- 
share at M?rch 31 1982 was 
ISOp xd (174'p *:;!) and assuming 
full conversion *••' ccnvertiMe 
loan stock was 157p xd (159jp 
xd). 

In accordance with 'he new 
policy' adopted a.* the E«~?.I last 
October a substantial proportion 
of group funds has been invested 
overseas. It :s poiniod out that 
while the relative performance 
of overseas markets in recent 
months has adversely affected 
the value of the fund, the 
directors are confident that these 
markets will provide “above 
average long-term opportunities.” 


Preliminary Profit Statement for year ended 31st January 1982 


Turnover 

Profit before taxation 
Earnings per Ordinary Share 
Assets per Ordinary Share 


1982 

1981 

% 

IRf’GOO 

JR£ 7 m 

Change 

491,851 

401,429 

+22.5 

21,367 

17,409 

+22.7 

12. Op 

8.5p 

+37.9 

95.0p 

8L6p 

+16.4 


Laughton 
edges ahead 
to £1.2m 


AN EXCELLENT performance 
from each of its operating divi- 
sions enabled Trafalgar House to 
increase pre-tax profits to £27. 72m 
for the half year to March 31 
1982. This compared with 
£2 l.51m fast time, which included 
£6.11m from what is now the 
demerged Fleet Holdings. 

The interim dividend is being 
raised from 3p net to 3.5p per 
20p share — the previous total 
payment was 6-2p on taxable 
profits of £55 m. 

Mr Nigel Broackes, the chair- 
man. say s the interim figures go 
some way to hearing out has view 
expressed last December, when 
he struck a note of qualified 
optimism. 

Turnover for the six months 
totalled £495m (£528m which 
included . former newspaper and 
magazine interests). At the pre- 
interest level, profits improved 
from £30.69m to £33.94m. Interest 
was lower at £6-22m (£9.18m). 

Tax charge was £9.7m, against 
£7.53m, and after minorities, net 
profits came through ahead from 
£13. 47m to £17.36m- There were 
also extraordinary credits of 
£554,000 (£308.000 debits). 

Stated earnings per share rose 
from 5.6p to 72p excluding extra- 
ordinary items, and from 5.5p to 
7.4p including the same. 

Profils from the group’s 
property and investment activi- 
ties climbed from £9.02m to 
£1 3.37m. These results improved 
as anticipated although the 
market became less buoyant 
during the period. Discrimination 
and selectivity continue to domi- 
nate the groups activity in this 
industry and the board is fully 
satisfied with the very' consider- 
able programme now in hand. 

This sector included figures 
from the group’s only remaining 
newspaper interest — a 50 per cent 
share in the London Evening 
Standard. This produced a 
modest contribution for the half 
year. 

In a difficult market — nation- 
ally and internationally — the 
group’s contracting, engineering 
amt housebuilding companies 


performed very wen and 
increased profits from £14.46m 
to £16.67ra. Large new overseas 
orders were obtained but next 
year's UK performance must 
depend on things getting better 
at borne. 


Shipping, aviation and hotels 
recovered strongly from the 
depressed levels of a year ago, 
with profits reaching £3.9m 
(£l.lm). The increased value of 
the dollar played its part. but. 
operational efficiencies and 
stable (or falling) oil prices also 
assisted. Present indications are 
that the improving trend will 
continue through this year and 
the following year. 

In addition to the QE2, three 
of Cunard's cargo ships have 
been requisitioned by the 
Government to serve in the 
Falklands crisis. The chairman 
points out tbat the disruption of 
the QES's summer schedule 


raises considerable administra- 
tive and commercial' pressures. 

There were again no ship 
sates in the first half period. 

Comparative figures have not 
been adjusted for the demerged 
newspaper and magazine in- 
terests. The amount of the 
special dividend and related 
costs of the demerger have been 
charged against reserves. 

See Lex 


Good Relations 


Results for the first four 
months of' 1982 at Good 
Relations Group entirely justify 
the confidence and the expecta- 
tions expressed at toe time of 
toe company’s flotation last 
December on the unlisted 
securities market, -said Mr 
Anthony Good, the chairman, at 
the annual meeting. - - 


DIVIDENDS ANNOUNCED 

Date Corre- Total 


Feedex 


Jefferson Smurflif 


Current 

of spending 

payment 

payment 

div. . 

int 

L25 

~ 

1.25 

Int 

3 

July 9 

3 


2.17 

July 1 

2.17 


2.6- ■ 

July 1 

2.6 

Tst 

3.75 

June 21 

3.75 


1.86 

July 5 

1.69 


L3 

— 

1.3 


2.1 

July 1 

3.45 

it... 

■L8 

— 

4.5 


0.65 

July 2 

0.45 


0.9 

July 1 

0.9 


3 

July 2 

3 

inti 

158 

— 

1.73 


2J5 

July 23 

2 

int 

Nil 

•— 

1 

int. 

X 

June 22 

1.75 

c ... 

1.58 

July 5 

1.31* 


3.13t 

July 16 

3.13* 

Int 

3.5 

July 1 

3 

, In. 

4 

— 

3.9 

int 

1.5 

Oct 1 

1.25 


Young Companies Inv. 


July 7 


Dividends shown pence per share net except where otherwise stated, 
* Equivalent after allowing for scrip issue, t On capital increased 
by rights and/or acquisition issues. t-USM Stock. § Irish currency 
throughout. 


1981 was a record year in earnings pershare, pre-tax profits and sales.lt was a 
successful year and indeed an eventful one-There wasasignificant recovery in profits 
fa the U.K. and Ireland and onr U.S. results were wefl maintained daring a 
recessionary period. 


GROWTH IN SALES AND EARNINGS 

Oursalesieached a new high of£492m,an increase of22.5& over the previous year 
Real volume growth was limited anda dealof theincrease comes from inflation and 
currency translation gains. 

Tradingprofit at £25. 9m is up 13^» on the previousyeat and is5.39c on sate s.Mar gins 
overall declined minimally against the prior period. Pre-tax profits for the Group 
were up 23ft on the previous year and in total amounted to £2L4m. 

Earnings per share atl2 Jp compared to 8.7p,up substantially by 389o.The increase 
comes from higher profitability and a lower minority interest caused by our 
advancing shaxeholdingfa Alton, our U.S. subsidiary, through the yean 


A SLIGHT rise in pre-tax profits 
from £1.13r.i in £1.2 lm has been 
shown by Laughton and Sons for 
1981. Turnover moved ahead 
from £13.42m to £15.93m. 

This dose company makes 
“ Stratton " compacts, desk aids 
and jewellery, Twinco domestic 
plastics and Lady Jayne hair 
care products. 

A final payment of 7p repeats 
the total dividend at lip. The 
company's ordinary Shares are 
net quoted. 

- There was a charge for tax 
this time oE E652.S33. against a 
previous credit o-f £70,851. Ex- 
change gains amounted to 
£746.239 compared with losses of 
£35.172. 


WOOLWORTH 

Interim Report 


Three months ended 30 April, 1982 


Net revenue 
rises at Young 
Companies Inv. 


12 months 
ended 
31 January 
1982 


3 months ended 
30 April 30 April 
1982 1981 

(unaudited) 


EOOO’s 

993,722 


TURNOVER (excl.concession sales & VAT) 


BALANCE SHEET STRENGTH 

Assets per share grew to 95p,up 16.4CS on thebalance sheet to 31st January, 15SL 
Net borrowings were 29% of total shareholders’ fands. 


DIVIDEND 

A final dividend of 3l219p per share ispcoposed.This maintains dividends for the 
year at the same level as 19S1 on the higher capital base from the Rights Issue and 
reflects the Board s confidence in the medium term outlook for the company despite 
the short term difficult economic circumstances in which we are trading. 

Together with the estimated Irish tax credit of L9p this is equivalent to a total gross 
dividend of 6.525p per share. 


CURRENT TRADING 

Poorweather conditions at the start of theyear,:recessicm in the U.S. A., seve re pri ce 
erosion in kraft liner, high interest rates in Ireland and little or no current upward 
ILK. demand are all combining to make far a most difficultfirsthalfyear. Itis 
believed that the second half year will see some improvementinboth demand and 
priringin Ireland, the U.K. and the U.S^A.Lookingpastl9S2 if theassumptionswe 
have made in our long termplans materialise and operating rates of container based 
production in. theU.S.rise to the levels projectedby outside estimates the results in 
the end will be both positive and very significant. Coupling this to any sort of 
recovery in the U.S. market where we have a substantial presence will lead the 
Group to a new plateau of profitability, cash fiowand dividends. 


Net attributable revenue of 
the Young Companies Invest- 
ment Trust rose from £397,330 
to £419,774 in the year to March 
31 1982 and the dividend is 
raised from 6p to 6.4p net with 
an increased final of 4.2p. 

Basic earnings per £1 share 
are stated higher at 6.44p (6.11p) 
and net assets at market value 
at 174p U56p). Unaudited net 
assets at market value on May 4 
is given as ISOp. 

Revenue before tax was higher 
at £602.404 t£5S2,550). and after 
tax of £182.630 (£185.220) and 
dividends of £416.945 (£390.197) 
there was a transfer to reserves 
of £2,829 (£7,133). 


47,188 

(13,347) 

(14,508) 

2,426 


16,504 

38,261 

(15,960) 

22,301 

(1,697) 

(319) 

20.285 


TRADING PROFIT 
Deduct; Depreciation 
Interest 

Add: Rent income 

Surplus on property disposals, 
excluding sale and leasebacks 

LOSS BEFORE TAXATION 
Taxation 

LOSS AFTER TAXATION 
Deduct: Extraordinary items 

Foreign currency differences 
LOSS FOR PERIOD 


EOOO’s 

EOOO’S 

228,127 

210,812 

+212 

5,692 

0,629) 

(3,143) 

(3,529) 

(1,912) 

CQD 

571 

• — 

834 

(2,348) 

2,042 

822 

(715) 


(1,526) 

75 

384 


(1,067) 


5B9p EARNINGS per ordinary stock unit of 25p (CMOp) 


JEFFERSON SMURFIT GROUP LIMITED 

International Packaging and Print from an Irish base 
Beech Hill, Qonskeagh,Dublin 4. 




Sp 


THE THING HALL 
USM INDEX 

123.1 (+0J) - 

Close of business 12/5/82 
BASE DATE 10/11/80 100 
Tel: 01-638 1591 


LADBROKE INDEX 

Close 587-592 (+5) 


Turnover shows an &2% rise on last year's first quarter and this year’s resultant 
gross profit value is greater than for the quarter in 1981. Turnover now excludes, 
concession sales and last year’s figures have been appropriately amended. 

Trading profit is marginally down In this least significant quarter; the rise in 
depreciation reflects the outlay on capital expenditure. The interest charge this 
quarter includes £% million on borrowings for the Dodge City acquisition; these 
borrowings have now been extinguished by monies received from property sales. 

The B & Q group achieved a profit before taxation of £567,000 after interest 
charged on its borrowings from external and Group sources. 

The figures shown and the result for the period are not readily translated into 
U.S. terms due to the required application of tiSi accounting principles. 


% 







y> ^ I 


\ Financial Times Thursday May 13 19S2 

* Companies and Markets 




- 


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UK COMPANY NEWS 


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Jefferson Sraurfit expands Second half fall 
by 23% to I£21.37m at Francis Inds. 


United Scientific climbs 
to £4.65m for six months 


TAXABLE PROFITS of Duhlifl- 
toaseU Jefferson Smurtit Group 
advanced by 22.7 per cent from 
l£17.4lm to T£21.37:n, in the year 
to January 31 1«S2. on sales 225 
per cent ahead at I£49L65m com- 
pared with I£401.43m. 

However, the directors of tb»s 
packaging, print add distribution 
group ay that real volume 
growth in sales was limited— 
with a large proportion of the 
increase coming from inflation 
and currency translation gains — 
though margins declined only 
minimally. 

Earnings per 25 p share Mated 
37.9 per cent higher at lip 
<8.7pi. and the dividend is being 
held at 4.625p net with an effec- 
lively unchanged final of 3.219p 
on capital increased by last 
year's rights issue. 

At the half year stage the group 
was already ahead with urc-tax 
profits or £10. 76m t£9.44rn» and 
turnover of £245 64m l£202.64mi. 

Looking to the current year 
the directors say the immediate 
future is difficult to predict. 
Poor weather conditions at the 
star, of the year, recession in 
the U.S., severe price erosion in 
Krsiftlincr, high interest rates m 
Ireland and hiilc or no current 
uoivard UK demand are com- 
bining to make a difficult first 
hair. 

Notwithstanding that, they 
say the second ball will see some 
improvement in demand and 
pricing in Ireland, the UK and 
the U.S. as in nearly all the 
group's key product areas 
prices are below cost. 

The first quarter published re- 
sults of tbe U.S. paper com- 
panies are poor. 

In tee year under review ibe 
•.roup's Irish business went 
through a touch tin;.! hut profits 
rose by 24 per cent. This still 
leaves The group a long wav back 
from its historical earaines base 
the director? say and with r»t-v: 
levels of competition and th« 
decline in the Irish economy it 


is unlikely ;o return to former 
levels. Profits before inu>roa 
and tax for the area went inwii 
£7.1m to £&Sfo. 

In the UK, the group's pro- 
duction unit* suffered Fruui 
very rcdsicvd demand but then.* 
was an improvement, with profits 
up from LI Ash to LJ.Sm. on wlus 
of £I425£J. 

Saleb in the U S. grew by 37 
per cent with ail divisions re- 
porting iRCrca-L 1 ?. The earlier 
part of The yi-ar buoyant, 
but from Oct iibvr The recession 
was clear!;.' dir^PWinSe. At the 
trading level profits were La :MC 
wirh the prior year. 

The it roup’-. :i5.«oci5!e m 
Niger;.! is^d poor year, itt 
line with the overall economy, 
find went track into losses. The 
share Of llitist* lusses was 
£73.000. Ir. Australis the group 
had a m.'idc« >ear. hut with its 
n**v acquis: l ton Ulearprint had 
ar. overall gain ard moved ihis 
husiness are;, tn hoiag a 
“mean-.i!;:ful preii: centre." lhe 
directors say. 

Pre-tax profits :r.c , .u«Ivd a 
share from -i.«iLi. tes of £GSJ.000 
f£142mi. while 1 ,t\ inah £3.S5m 
(£2.6.3.'m leaving a net surplus 
of £ 17.52m iSK.Tfeni. 

Mi nor: tv profits were* lower a I 
£2. (Vim l£4.S2nr.J reKeeJin,' «he 
group’ s a dvanc ir, 4 mare ho 'din t 
in Alton, while extraordinary 
debits jamj*»:d In £-1 "5m 
(£9SJ,fK>0j. These were made up 
TOMbiv tit UK closure costs par* 
Ticuiarlv Barre? IVexiMc 
Paekaaia^ and Jamos I? antes, 
and rationalisation cos:? re- 
’..ling tn Sumrfir Plastic* »n 
Waterford and ‘.vrm.aating 
F.arnviaion Publication*. 

Attr;:»utnb’:e profits e'-i-.-rged 
-t £9 .m«ii r £S 8S:n > :tr.» dividends 
absorb SJlflm |£5.ir*m». 

The directors sav the gnnro 
balance I !«t- 1 r*-r.wi!is umnu. 
Asset? grew ;o pec share, 
up 16 per cent, while riel 
borrow trips at the year end were 
29 per cent of tmaJ rhareiislders' 


Ellis & Goldstein moves 
ahead to £1.4m for year 


.ALTHOUGH TURNOVER nf 
ladies' outerwear manufacturer 
Ellis and Goldstein ( Holdings | 
fell slightly from £40.46m to 
£39.72m, pre-tax profits moved 
ahead from £1.24m to £1.42m for 
the year ended January 51, 
1982. At halfway, taxable figures 
were up from £457.000 to 
£511,000. 

The final dividend is a samc- 
again 1.3p net for an unchanged 
total of 2.15p per 15p share. 
Slated earnings per share were 
marginally lower at 5p (5.1p) 
after tax of £276.000 (£30.000). 

Tbe directors say current 
trading is flat and to attempt :i 
forecast of the likely outcome 
of this year would be unwise. 
However, efforts to increase effi- 
ciency. improve performance 
and develop new merchandise 
ranges will stand the company in 
sood stead for any recovery in 
demand. 

They say difficult trading con- 
ditions were reflected in under- 
standable caution by the com- 
pany’s wholesale customers as 
well as a reduction in their 
number. Steps have been taken 
to develop new ranees to appeal 
to markets different from those 
where the renutation of its 
brairds are strong, but the 
directors say these must take 
time to mature. 

The company’s retail sales 
were modestly improved as in- 
flation in selling prices was low 
and volumes were largely main- 
tained. . „ 

Last year’s reorganisations 


were fell owed by another, 
smaller factor;.- closure ibis year. 
The costs, which v. ere noi sig- 
nificant. have not been separately 
stated. 

la current cost terras, pre-tax 
profits were £413.000 (£433,000) 
and earnings per share 0.6p 
(1.5p). 

• comment . . 

As foreshadowed at the interim 
stage, Ellis and Goldstein has 
managed a creditable per- 
formance in difficult times. 
Rationalisation undertaken last 
year helped to improve 
.productivity; manufacturing 
capacity has been slimmed and 
The group ha* shed 600 job, in 
the last 12 months.. Wluolcsalc- 
turnover slumped in the year 
by more than 12 per cent, but 
retail sale? advanced thanks to 
the strengths or the company's 
well-known trademarks. East ex 
and Dereta. E and G’s ston.- 
witoin-storc retail outlets are 
now* absorbing more than 60 per 
cent of the group’s output, com- 
pared to 40-45 per cent a few 
years ago- The group’s balance 
sheet remains firm. E and G is 
now branching into Italian- 
sourced knits m order 10 tackle 
the more up-market boutique 
trade. The shares gained lp 
yesterday and at 25p. »hc main- 
tained dividend indicates a 
yield of around 13 per cent. 
With no real sign of recovery 
in the rag trade m sight, the 
shares are likely to lean on the 
yield for some lime to crime. 


Feedex 20% ahead and 
cautiously optimistic 

TAXABLE PROFITS of Feedex £33.97m <£3Q.74m) but fading 
Agricultural Industries improved profits were static at i.l0,b53 
by 20 per cent to £431.634 for (£709,457). 

1981, compared with £359,541 The pre-tax surplus included 
previously, aided by lower net 3 share of associates profits of 
interest charges of £233,910. £4jS4m (£4.2Sm). There was a 
against £354,192. t ax credit this time of I7S.410 

■Wltb operating PouditJon, eon* flpK 


JUlCItJV — O’- 

against £354,192. t ax credit this time of I7S.410 

“With operating conditions con- (£60,000) but the directors 
timrins to improve the final point out that had 1 . not been 
dividend is being increased from for a release of deferred tax 
0 45o to 0.65p. -which raises the arising from capital ahawancM 
net?o& to L15p (1.1P) per 10? of n?W« .there wotUdhave 
share— stated earnings per been a tax charge of «97.7^_. 

through higher at After minorities of £j7.950 
SSE? ^iwnlrmd at 2.42p (£22.076) and extraordinary 

( idudiie a tax credit, debits of £76.264 (£17,870) the 
(2J4P) excluding a u acQlbutab i e balance advanced 

Tbe directors describe the from £379.593 t0 y415,SS0 from 
results as good, given the gen- nlvidend nsvmenis absorb 


results as good, given the gen- 
erallv difficult market con- 
ditions in which the gremp 


which dividend payments absorb 
£1504)77 (£143,839). 

Commenting on tbe results 



cuuuua **• _■ v,ojnuiemur“ un mi- ‘s™-'- 

operates— animal feeding stuffs, directors say that sales 

grain merchanting and the manu- vo i uine s -were maintained over- 
facture of agricultural aili aj^ugh in some product 
machinery. areas retention of market <hare 

Thev add that a number of resulted in lower margins. A 
oosilive trends are beginning to notable increase in sales was 
emerge which has created a achieved by Hoicerness Fuel 
“feeling of cautious optimism Supplies operating in its 
for the future." enlarged area, which accounted 

Group turnover for the year for around half the increase re- 
rose by some 10 per cent to corded by the group as a whole. 

Bellway down to £54,000 

THE PROB LEMS faced by tbe stimulate imprest in home uwoer- 
construedon industry during ship. 

recent months are reflected in They say group sales are run- 
Bell way's figures for the six nine at an. acceptable level, and 
months to January 3L 1982. The it is anticipated that Hus will 
nre-tax figures have fallen from result in last years profits ^ 
£217000 to £54,000, hut turnover least being maintained. An :n- 
of this housebuilder improved lerim dividend of 3p has again 

the S’ 7p £ WiLt^roflts of 

tile w 

SWSr -52T™-5 

SooMbt i ben^t to the co^ j^ooJ^asooB** S tSk 

Sia? 5 HsSi« 

with a view to providing houses £348,000 (£333,uUU). . 

^ tn Saw laBimg ^ are 

acquire their first homes and fell from 1.2p to O^p. 


# comment 

The ueaknebS of ihe punt lias 
u lot to do with tlic 22.5 per 
l-wii increase m pre-tax profits 
to IRI21.4I1! achieved by 
Jefferson Simirfit. But more 
than half the gain was 
“genuine." larrely due to re- 
covery in the UK and Ireland. 
Despite UK profits growth of 
167 per cent from a very low 
base, there is still a lot of work 
tn be done in the UK. where 
margiDs s t re only 2« per cent. 

In particular corrugated paper 
experienced a lfi£i;m turn- 
round mio losses. The l).S. 
recession put itn- brakes on the 

spoctatular profits growth 
achieved by Alton Packaging, 
but lhe company has high hopes 
for this operation as wilnu*s 
planned i.ipita! investment of 
IR££tni This year at lhe Jack- 
sonville mill. Currently gearing 
i:. 29 per cent. The 24 per 
cem profits growth in Ireland 
represented rail savings and 
loss elimination rather than 
signs of an upturn in lhe 
economy. The company's - con- 
fidence " in maintaining the 
dividend after record profits 
should be seen in the light of 
lhe ratlier bcanr.h statement 
about current trading. Al 63p, 
up 4p, the sba re yn-Jds aibout 
9 per cent to UK holders. 


SECOND-HALF pre-tax profits of 
Francis Industries, engineer, fell 
from £979,000 to XS33.000. and 
figures fur 19S1 as a whole were 
down from £1.8in to £1.74zn. 
Alfhwgh the final dividend is 
uuebanifed at 3p. tbe year’s total 
is increased from 4.75p to 5p- 

Tn mover w-as little changed at 
£29 56m compared with £29.7lm. 
The pre-tax figure was struck 
after higher interest charges of 
£481,413 (£370,195). 

Stated earnings per 25p share 
were 13.7p (1436p) before extra- 
ordinary items. Net asset value 
per share improved from 10&2p 
to U3.96p. The directors say 
that at the year-end, group 
liquidity exceeded bank borrow- 
ings by marc than £lm. 

'fhe £1.7m pre-tax profit 
includes around £500,000 short- 
term profits on invested funds 

againsT Nome £400,000 in the 
previous year. 

For the current year, lower 
figures are expected from this 
source, although the interest bill 
is also expected to go down. 

• comment 

But far the relocation of its 
plastic injection moulder Lac- 
rinoid, Francis Industries would 
have pushed pre-tax profits over 
£2m this time. Even so the 


figures were slighiiv above ex- 
pectations and yesterday the 
shares put on 4p to 74p yielding 
10 per cent. The move proved 
more disruptive than planned 
producing a trading loss of 
some £250,000 and it will be well 
into 1983 before full benefits are 
felt Exeluding gains on invented 
funds — up from £400.000 u> 
£500,000 — the profits slippage 
reflects, ic part the depressed 
automotive market which 
accounts for some 35 per cent 
of group business. Overall the 
decline in volume — up to SO 
per cent for tbe main subsidiary 
— was offset by a substantial 
growth in margins arising from 
continued slimming and cost cut- 
ting. A sluggish start to the 
current year with the U.S. 
taotor industry’ remaining in the 
doldrums and only a small pick 
up in demand leaves little room 
for optimism in 19s2, outride a 
strong balance sheet. The com- 
pany, which never seeks to he 
more than a steady performer, 
must look to 1983 and beyond 
with the hoped for recovery in 
the U.S. motor business, a mere 
significant contribution from 
recent small acquisitions and the 
benefits of being leaner and 
fitter. 


TURNOVER of armoured 
vehicle, optical and electronic 
equipment manufacturer. Halted 
Scientific Holdings, jumped from 
£ 16.59 m to £45.43 tn for the half 
year to March 31 19S2. while 
pre-tax profits increased by 
£l.SIm to 14.65m. 

The figures included a full 
contribution from Alvis. But 
because the bulk of Alvis de- 
liveries in the period were on 
relatively tow margin contracts 
fur the" Ministry of Defence, 
overall group margins were 
lower than those al the previous 
year end. 

Id view however, of the sub- 
siantial inflow of work in lhe 
early part of this year, it is 
aalit-ipuied that results for the 
second six months »“!J show a 
.-‘ignifiL-anl increase over those 
now reported. 

The interim dividend is 
effectively being stepped up 
from l.25p :o i.5p net per 25p 
r-liare — The previous total was 
equivalent to 3d. 

Tax charge was £0.7® higher 
a! £19m for the half year, 
leaving net attnbuiablc profits 
of E2.67m, compared with 
£1.57 m. Stated earnings per 25p 
share rose from 4.Up to 4.96p. 

The group’s order book is in 
excess of £l35.-n. 

The result excluded the Roilei 


Companies, as thes* only com- 
menced trading in January. 
They will however, be included 
in the full-year figures when it 
it is hoped that they trill con- 
tribute a small surplus. 

# comment 

United Scientific fails to break 
out the contribution from the 
Alvis acquisition but the period 
was dominated by tbe winding 
down of low margin MoD 
contracts which have now been 
replaced by more profitable 
overseas orders. Half the group’s 
£I35m order book (lead times 
about a year) belongs to Alvis 
■with exports accounting for the 
lion's share. Alvis is probably 
capable of £4 ini this year which 
should sec USH up to X121ai 
pre-tax. Nothing new there: the 
market has been aiming for u 
profit of that magnitude for 
.some time. What has really got 
the shares bouncing in the last 
week is 'toe news of a tie-up with 
the Eysptian ministry of 
defence. The joint venture is 
still eighteen months away from 
production but already it is seen 
as a spring board into the rest 
of the Arab world and is 
certainly the biggest move since 
Alvis was bought from BL last 
summer. Also a similar arrange- 


ment with Eygpt is anticipated 
for Alvis’ Scorpion tanks. 
Changing hands aronnd 330 p 
before the joint venture was 
announced last week the 
shares rush up to 395p on the 
news. Inevitably profit lakers 
have been tempted. Last night 
the price settled back to 370p 
where a fully taxed p/e of 33 
may look overheated but the 
growth curve appears steep and 
USH is one of ihe purest 
defence stocks around. 


May 12 

Price 

•ff 

/for— 

Bjnco B I&jd 

244 


Banco Central 

DiE 


Bjnco Enenor 

3W 


Batica H'SPcno 

306 


Banco Ir-d. Cnt 

1)4 


Banco Soniander 

324 

'+2 

Banco toqu'jo 

204 

—2 

Banco Vi2C3»3 

358 

■+i 

Bjn:o ZaiagofO 


DtagxJcs 

150 


Espan&la Zinc 

69 

+0 5 

Fecw 

66.2 

Gal. PteztiS oa 

40 


H'dtola 

67 7 

+ 0.5 

Ujctaticro 

52 

-*-1.2 

Pcfoteos 

91.2 

+ 1 

Peuoliber 

99 


Sogelisa . •• 

6 

:+o.5 

TeJMcmca .. 

70.5 


Union Elect 

67.7 

'+ 

o 

ij 


FIRST QUARTER RESULTS FOR 1982 FROM 

Royal Insurance 


The results for the first quarter are set out below; these should 
nol be taken as providing a reliable indication of the outcome 
for the vear as a whole. 


Exchange Rates 

Foreign currencies have been translated 
according to our normal practice at 
approximately the average rate of exchange 
ruling during lhe period. The principal rates 
were:— 


3 mouths to 
31 Mardt 
1982 


3 months to 
31 March 
1981 


Year 1981 


3 months to 3 months to 


General Insurance: 



• - 

Premiums Written 

432.1 

344.1 

1.489.9 

Underwriting Balance 

-64.1 

-18.3 

-102.9 

Investment Income allocated to 

General Insurance operations 

43.2 

31.0 

152.3 

General Insurance Result 

-20.9 

12.7 

49.4 

Long-term Insurance Profit 

33 

2.8 

12.1 

Investment Income allocated to 

Capital and Reserves 

TL9 

9.6 

49.0 

Share of Associated 

Companies’ Profits 

22 

1.6 

7.0 

Profit before Taxation 

—2S 

26.7 

117.5 

Less Taxation 

-7.7 

12.6 

44.9 


31 March 
I9S2 

31 March 
1981 

Year 1981 

SUE 

S230 

S2.02 

S2.23 

S2.75 

S2.42 

SI. 70 

SI. 97 

SI. 76 

FIs 4.75 

FIs 536 

FIs 5.02 


Minority Interests 

Net Profit attributable to the 
Shareholders 
(pence per share) 


(credit) 

0.2 


4.0 13.9 71.7 

(2-Tp) (7.7p) (3&5p) 


USA 

Canada 

Australia 


Due to changes in exchange rates lhe 
underwriting balance was adversely affected 
by £7.3m whereas the total investment income 
benefited by £6.7m. 

Investment Income 

Tbtal investment income at £55 dm increased 
in sterling terms by 35%%; allowing for the 
changes in the rates of exchange and the effect 
of the rights issue the underlying growth 
was 16&%. 

Long-term Insurance 

The profit of £3 -3m (£2.Sm) represents a 
quarter of the estimated contribution from 
long-term insurance profit coming through for 
the whole year. 

General Insurance 

Premium income rose by in sterling; 

allowing for tbe effect of currency changes, 
the increase was 11%. Details of the result of 
individual profit centres are as follows:— 


lathe United Slates the operating ratio was 
1 152% (105.2%); the claims ratio was 85.4% 
(75.2%) and the expense ratio 29.8% (30.0%). 
Results worsened in commercial multi-peril 
and automobile business partly due to the 
effects of the severe winter weather. Workers 
compensation business remained profitable. 

For Royal UK personal and commercial 
property lines were adversely affected by the 
extremely severe weather losses which are 
estimated atover£30m. Commercial accounts 
also suffered from the widespread reduction 
in market rates which have become clearly 
inadequate. 

In Canada, the continuation of the rigorous 
remedial underwriting and upward pricing 
action brought about the considerable 
improvement in the result. This was 
accompanied by a significant redaction 
in exposures. 

’ The results overall for Royal lot showed 
some improvement in the absence of large 
losses. 

In Royal Nederland the commercial properly 
account suffered from a number of large fire 
losses. Motor business remained profifable, but 
at a lower level. 

In Australia, where there was a marked 
reduction in the quarterin the number of large 
losses, results improved in most major classes, 
particularly commercial fire. Here, too, 
exposures have been red need. 

The better result for Koval Reinsurance reflects 
an improvement in the Home Foreign Acco cut. 


3 months to 31 March 1982 


Premiums 

Written 

£m 


Under- 

writing 

Balance 

£m 


Allocated General 
Investment Insurance 


Income 

£m 


Result 

£m 


3 months to 31 March 1981 

Under* Allocated General 
Pre mi u ms Writing Investment Insurance 
Witten Balance Income Result 


Hoydl USA ■ 

1773 

-28.7 

173 

-10.9 

115.9 

-8.8 

12.5 

3.7 

ROyal llh 

130.4 

—23.8 

125 

-113 

117.0 

6.1 

9.5 

15.6 

Royal Canada 

41.1 

-8.7 

7.2 

—13 

393 

-11.7 

4.4 

-73 


29.1 

-0.2 

1.7 

.1.5 

26.1 

-0.9 

13 

0.6 

Royal Nederland ....... ....... — 

23.0 

—1.2 

1.4 

03 

22.0 

03 

13 

1.5 

Royal Australia ............ .. ........... m. . . 

15.8 

-1.1 

1.8 

0.7 

113 

-2.7 

13 

-1.4 

Royal Re 

15.4 

-0.3 

0.8 

0.5 

123 

-0.6 

0.6 

0.0 

Other 

— 

-0.1 


-0.1 

— 

— 

_ n 



432.1. 

—64.1 

432 

-20.9 

344.1 

-18.3 

31.0 

12.7 




Group Head Office. 1 Curhhill. London EC3V 3QR. 





PRELIMINARY ANNOUNCEMENT 

(Historical Cost; 

Dividends ** 

Ordinarv Shares, proposed i-»< 

pers 

(Payable on 5 th July 19S2 to shareholder!; on 
register at close of business on 7th June 19S21 
Already paid 


Making a total of 


Turnover 

Profit before taxation 
Taxation 


Profit after taxation attributable to shareholders 

Amounts absorbed (net of waivers) 

(it hy Preference dividends paid and provided 
(ii> by Ordinary dividends paid and proposed ... 


Earnings per share before taxation 17.2p 14.8p* 

Earnings per share after taxation lLOp lO.lp* 

■ adiusted for scrip issue 

Profit for 19SI is after setting aside an additional allocation of £250.000 into the 
Pension Fund (1950 — £650.000 1 and providing £531,000 for the Staff Share 
Participation Scheme (1950 — £455,000). 

STATEMENT BY THE CHAIRMAN 

Mr. W. M. Peacock. iW.A. 


1981 

1980 

l-575p 

1.3I25p 

per share 

per share - 

1.125p 

.9375p 

per share 

per share* 

2.7p 

2.25p 

per share 

per *b are* 

1981 

1380 

£000 

£000 

400,345 

345.359 

10.087 

8.645 

3,684 

2,776 

6,403 

5.869 

3 

3 

1.524 

1.233 

1,527 

1.236 

lL2p 

14.8p* 

11. Op 

10.1 p« 


I am glad to he able lo report that the 
fourteenth year since your Company 
became a Public Company shows not only 
new records in both sales and profits but 
also milestones passed in both depart- 
ments — £400 million in sales and £10 
million in profits — and I should like to 
start this Report by thanking our staff 
for all their hard work which has pro- 
duced these new records in limes which 
are certainly not easy. 

Sales at £400.345,000 lor the fifty-two 
weeks have increased hy £54.986.000 over 
the £345.350.000 achieved in the previous 
financial year of fifty-three weeks. Profits 
of £10.087.000 before taxation compare 
with £8.645.000 the previous year. Profits 
a Tier taxation are £6.403.000 compared 
with £5,869,000 in the previous year. 

The Directors are recommending a final 
dividend of 1.575p per share. This, 
together with the interim dividend of 
l.I25p per share already paid, makes a 
total for the year of 2.7p per share and 
compares with 2.25p per share for 1980 
(adjusted for scrip issue). I have waived 
the dividends on my own shareholding. 
As I mentioned in my Interim Report, 
competition continues to be extremely 
fierce in all areas, both because of the 
shortage of money brought about by the 
recession and the numher of competitors 
fighting for the available business. It is 
all the mnre pleasing that the sales 
increase held up above the rate of infla- 
tion throughout the year and so far 
continues to do so. The lower margin 
goods that we sell continue to make up a 
bigger proportion of our sales mix — 
partly because of the considerable 
increases in cigarette prices during 1981 
— and (his is bound to have some effect 
on our profit percentage. 

Our customers have inevitably heen 
affected hy the large programme nf super- 
store openings up and down the country. 
However, evidence continues in nemmu- 
late of the polarisation effect brought 
about hy these larjte stores whereby the 
medium and small niulliole supermarkets 
cease to be viable. We continue to 
believe strongly that there has never been 
a heeler opportunity for well run. 
privately owned shops sited conveniently 
rinse to where people live and more and 
more customers prove us right. This is 
particularly true or the customers we 
talk in who are taking advantage of our 
promotional activity and following our 
recommended selling prices. 

Our own brand “ Peacock " products have 
had a good year, and among other lines 
we have recently launched, very success- 
fully, three breakfast cereals. We set out 
to promote our own brand in a way that 
does not cut into our support of manufac- 
turers' brands and. as wholesalers, 
believe this has to he the right approach. 
Our brands will therefore never pose the 
threat that ihnse of the retail multi pies 
do tn (he manufacturers' brands. We have 
always regarded our relationship with our 
suppliers as a partnership for providing 
efficient distribution fnr their products, 
and I would record here our appreciation 
of the help we receive from them. 

During the tear we installed and changed 


over to a new and considerably more 
powerful computer. A number of un- 
expected troubles have caused a great 
deal of extra work for our staff in that 
department and they are to he congratu- 
lated on the way they have heen coping 
with the problems with minimal distur- 
bance to the Business. 

The builders of our new branch near 
Nuneaton kept tn time, in suite nf the 
dreadful weather last winter, and we 
opened on 29th April as planned. The 
trading since has confirmed the welcome 
our canvassers received on their visits to 
potential customers in the area and once 
again our Staff, many of them new to nur 
Trade, have done a wonderful Job pre- 
paring the Branch for husiness and coping 
with the volume since. 

Building is well under way on a replace- 
ment in Wimbledon for our branch at 
Raynes Park which has been overstretched 
for years, and we have recently negotiated 
the purchase of an excellent site next 
to the Kent Motorway system at Rochester 
Airport. This will replace our Chatham 
branch — again very much overdue. Both 
these replacements should he operational 
in 1983 and will add approximately fiS.OOn 
square feet. In addition, extensions are 
being made to the Aldershot, Nottingham 
and Sidctip branches. 

Once again I should like to record my 
appreciation for all that nur Staff have 
done during the year. Their enthusiasm 
and application to their work cnuld be an 
example for the Country and I am con- 
tinually heing told hy customers ihn our 
Staff are the best in our Trade. We have 
always aimed lo pay the best wattes 
possible and our rates have been among 
the highest in our industry. We hear 
that considerably lower rales are being 
paid hy competitors, which on the face 
of it puts the Company at a potential 
disadvantage. However, we have no 
desire to take advantage of The current 
unemployment situation and believe that 
nur Staff will ensure that the Company 
does not suffer. In view of the profit 
record brought aboui over man'- 'pars 
by a loyal and dedicated tpam. I feci s"ro 
our shareholders will agree with this 
policy. 

I am pleased lo say that 1.400 of the Staff 
are members of our Share Participation 
Scheme. You will see among the resolu- 
tions to be considered at the ACM one 
proposing tn increase the maximum 
individual allocation. As with our Pension 
Scheme we want only one Share Scheme 
to cover all employees but. equally, we 
must ensure that ours compares favour- 
ably with other companies. If the resolu- 
tion is approved therefore and subject to 
Revenue approval, we will increase the 
maximum allocation from £1.000 to 11.250 
□s proposed in the recent Rudget. 

A large number nf our part-time Staff 
have been with us for man»- years and 
have made a substantial rontrihution tn 
the Company's progress. l.“nlil now they 
have not been covered hy nur Ppnr-ion 
Scheme, but I am pleased to report that 
arrangements have now heen made to 
expand the Scheme so that they can be 
included. 


Head Office: Bushey Road. Raynes Park,$W20 OJJ. TeL: 01-946 9111 


CD 


Wheelock Marden 
and Company Limited 

* Recurring Profits increased by 160.7% over the annualised 
results of the previous nine-month period ended 31st 
December, 1980 

* Total Distributions per Share increased by 32.0% over the 
annualised results of the previous period 

Financial highlights from the accounts for the year ended 31st 
December, 1981 


Year ended Nine Months 

31/12/81 ended 31/1 2/80 

HKS'miUion HKS'million 


Consolidated Net Profit After Tax 
Exchange Fluctuations 
Extraordinary Items 


Total Dividends Paid and Proposed 

Special Capita! Bonus Proposed Payable in Cash’ 

Consolidated Net Assets 

Consolidated Net Asset Value 
Per HKS1 .00 “A* share 
Per HKS0.10-B" share 

Earnings Per Share (before Exchange Fluctuations and 
Extraordinary Items) 

PerHKSI .00 "A* share 
Per HK$0.1 0 "B* share 

* Adjusted for the 1 for 1 0 Bonus Issue made on 4th 
June, 1981 


534.95 

5.37 

165.47 

705.79 

101.46 


1,940.98 


153.89 

6.69 

167.55 

328.13 


1,35131 


HK$ 

$0.46* 

$0.05* 


The Annual General Meeting will be held at the Mandarin Hotel, Hong Kong on 26 th May, 1982. 
Copies oldie Report and Accounts for the year ended 31 st December, 1981 can be obtained from 
Miss Sheila Gray, Wheelock Marden (UJC.) Limited, 2, Lower 5 fame Street, London, SW1W8BJ. 


1 982 Our Golden Anniversary Year 


ijr 


BCA making two 
purchases in U.S. 


BY BAY MAUGHAN 

British Car Aartlons has agreed 
two of the deafe outlined in 
March to buy vehicle auctions 
businesses in Nashville, Ten- 
nessee. and Kansas City, Mis- 
souri. 

Fnr a total price of S9m 
f£4 9m i. subject to future profit 
performance. BCA is acquiring 
Nashville Anto Auctions tNAAi 
and Metro Auto Auctions of 
Kansas City (Metro). 

NAA is beinz acquired for 
$2 .5m nn completion next Tues- 
day and a further SI. 5m, as a 
minimum, based nn the aggre- 
gate nf profits in rbe three years 
to December. 1984. 

NAA's assets have been pro- 
fessionally valued at SS.lSm. 

BCA is paying SI. 5m on com- 
pletion oC the Metro deal in a 
fortnight and the balance of 
S3.5m is payable on an instal- 
ment basts over three years. Tbe 
buyer will assume liability fflr 
Metro’s $800,000 short-term 


loans, secured on land and 
buildings, and will inject Sim as 
working capital. Metro’s freehold 
property has been valued at 
S3m. 

Half the sum payable on com- 
pletion of both deals wOl be 
fundPd from BCA's own 
resources and the balance will 
be advanced by UDT and 
Williams and Glyn's. 

NAA and Metro together pro- 
duced ore-tax profits of $2m in 
1981 after paying proprietors’ 
emoluments of $300,000. 

BCA is also negotiating to buy 
three further car auction busi- 
nesses in the U.S., a company in 
Ohio and two smaller operations 
in Florida to cost an aggregate 
of some 81 Dm -Slim. 

It has also been proposed that 
UDT will repeat its stock 
financing arrangements, recently 
agreed with BCA in the UK, to 
the U.S. on a partnership basis 
with BCA. 


NCC Energy sells stake 
in Simplicity for £15.8m 


THE BREAK-UP of NCC Energy, 
the exploration group built up 
by Mr Graham Ferguson Lacey, 
ha P been taken a stage further 
with the sale of NEC's major 
individual asset, a 20 per cent 
stake in Simplicity Patterns of 
New York, tn a Denver-based 
natural resources company, MCO 
Holdings, at $10.50 per share to 
raise Just under £13.Rm. 

Mr Charles Hurwitz. president 
of MCO. has taken over from Mr 
Lacey as chairman of Simplicity. 
The Bond Corporation of 
Australia *nnou;?ce<j yesterday 
that its associate, Waltons Bond, 
bad also agreed to sell Ks 13.4 
per cent stake in Simplicity to 
MCO 

Bond originally acquired its 
holding from Mr Carl Icalin in 
order to facilitate NCC's pro- 
posed merger with Simplicity. 
That deal finally fell through, 
although NCC had achieved 
boardroom control, in the face of 
legal objections by private 
Simplicity shareholders in New 
York. 

Burdened by the rising cost of 
serricioE the loan? taken on to 
ffmnrp the Simplicity stake. Mr 
Lacey * boldine company. 
Birmingham and Midland 
Count i®s Trust, went into 
receivership la*-f month and Us 
?6 per cent stake in NCC was 
acquired at per share by 
Cook International. 


Cook now holds some 47 per 
cent of NCC and is preparing to 
launch a bid for tbe outstanding 
shares. Mr Ned Cook, chairman 
of Conk International is now 
heading NCC. 

Until a full accountants 
reports and asset appraisals into 
NCC have been prepared, the 
independent NCC directors are 
advising shareholders to take no 
action. The reports are not 
expected to be completed for at 
least another three weeks. 


PENTOS SELLS 
CEDARWORTH 

Pentos has completed the sale 
to Pilotstar nf Cedarworth Homes 
of Britain and freehold and lease- 
hold" property at Paddock Wood, 
Kent for an aggregate cash sum 
of £2 ,63m. 

This follows the agreement of 
Pentos shareholders at an EGM 
held on May 10. 

Of the consideration, £H7m 
was for the property, £755,104 an 
Initial payment for Cedarworth, 
£651,076 fnr an increase in the 
Cedarworth overdraft since 
December 31 1981 and £55,681 
for the payment of interest. 

A further consideration of 
£1.5m remains payable in two 
instalments: flm on December 31 
1932 and £500,000 on June 30 
1383. 


Greenbank in £1.1 m deal 


Greenbank Industrial - Holdings, 
the Blackburn based engineer- 
ing group, has bought the Anti 
Degradation Company, a pri- 
vately owned abrasion resis- 
tance compound manufacturer 
for £1.1 5m cash. 

Greenbank completed the 
acquisition this week after test- 
ing (he various compounds' 
formulae that were included in 
the purchase price. Greenbank 
sees the acquisition as improving 
its position in the abrasion 
resistant market and is looking 
at the possibility af using the 
compounds in conjunction with 
some of its existing products. 

The company also believes the 
compounds could have con- 
siderable export potential 
because of low weight and wide 
range of applications. The com- 
pounds are used to protect plant 


and strurtures from deteriora- 
tion caused by severe service or 
environmental conditions. Anti 
Degradation also applies the 
special compounds to products 
as part of its business. 

Anti Degradation made an. 
ad justed pre-tax profit of 
£249.410 on a turnover of some 
£900.00(1 in the year ending 
November 30, 1981. It had net 
assets «r/»nh £247,489 at book 
value. Tbe rompany based out- 
side Huddersfield, Yorkshire 
employs 24 people. 


SHARE STAKES 

J. E. England and Sons 
(Wellington l - 1 - Walter Duncan 
and Goodricke has bought 190,000 
&ares. increasing holding to 
1 •.145.000 shares (26.9 per cent). 


LONDON TRADED OPTIONS 

May IS. Total Contract! 3,635 Calls 1,933 Puts 708 
July Oct. ; Jan. | 


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0: 


Ex'rr.lie Closing 
nnce . offer 

Vol. 

Closinn 

offer 

Vol. 

Cloning 

offer 

Vol. 

Equity 

close 

i 

260 

70 


76 

10 

_ 

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316p 


300 

52 

4 

42 

— 

52 

— 


330 

14 

12 

22 

20 

52 

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2BO 

6 


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1Z0 

23 

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138 p 


130 

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140 

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160 

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November 

- I 1 


- 99p 


- 349p 


8 

— casp 


Duport to 
sell plant 
to BSC 

Dnport has agreed to see its 
dosed steelmaking plant at 
Llanelli to British Steel Corpora- 
tion for an initial £2m plus a 
share in any profit BSC may 
make by selling it overseas. 

The deal is subject to the 
approval of the European 
Commission. 

The modern plant, which was 
originally valued in Duport’s 
books at £25m, was shut in April 
1981, a casualty of the sharp 
drop in UK demand for steel 
and the company’s liquidity 
squeeze. 

Mr Henry Mitchell, finance 
director of Duport, said the sale 
was arranged because it looked 
as if It would take. a long time 
to find a buyer and BSCs over- 
seas subsidiary had more 
resources than Duport to devote 
to the task. 

He did not know if BSC had 
found a buyer. Tbe formula for 
sharing the profit on any resale 
provided that BSC (Overseas 
Services) would receive the 
larger portion of any proceeds. 

At tbe time of the closure of 
the mill and tbe sale of the 
group’s other steel interests. 
Duport made provisions of 
£41. 8m. Mr Mitchell said there 
would be a significant recovery 
from these provisions provided 
the sale to BSC goes through 
and this would be shown in the 
group’s preliminary results for 
the year to January 1982 to be 
published next week. 

Cannon buys 
part of Carron 
in £1.9m deal 

Carron Company Holdings, the 
general engineering and ceramic 
products company, has reached 
an undemanding with Cannon 
Industries, a General Electric 
Company subsidiary, over the 
sale of part of Carron's appli- 
ances division, in a deal worth 
some £2.9m. 

The sale will cover both plant 
mid equipment and the right to 
use the Carron name for 10 
years. Patents, technical infor- 
mation and stocks are also 
included in tbe proposed deaL 
Cannon Industries will acquire 
the stock of appliances on hand 
by June 30, and this is expected 
to be worth around £780,000 at 
book value. Cannon will pay for 
this in cash as and when the 
stock is sold and paid for by 
customers. 

The remainder of the purchase 
price will be £l.lm payable in 
cash in three tranches later this 
year. The book value of the 
assets other than stock is about 
£600.000. 

Carron Intends to use the 
proceeds to reduce borrowings. 
Carron lost £342,000 net in the 
12 months up to December 31, 
1981 on its appliance division. 

TRUSTHOUSE FORTE/ 
PERRY PUBLICATIONS 

Trnsthouse Forte has acquired 
the minority shareholding held 
by Mr Geoffrey and Mr Nicholas 
Peny in Perry Publications. 
Both have resigned from the 
board and their places are being 
taken by Mr John Robbins and 
Mr Paul Coley. 

Mr Ken Campbell, who is 
advertisement director of the 
Food Magazine and who has 
been on the board of Perry Pub- 
lications since its inception, has 
become general manager. 

Plans are now in hand for the 
development of the magazine. 


Baggeridge 
Brick lower 
at midterm 


Buildioq materials supplier, 
Baggeridge Brick tost ground in 
the six months to March 31 19S2 
with pre-tax profits failing from 
£136.000 to £74.000. However, 
despite a decline In earnings per 
25p share from 1.625p to 0.9p. 
the net interim dividend is held 
at 1.25p. Last year’s total pay- 
ment was 3.75p from profits o -f 
£405,000. 

On turnover of £2.2fim 
(£2.4801). trading profits for the 
half year slipped from £302.000 
to £221.000 and the taxable result 
was struck after depreciation of 
£131,000 (£142.000) and interest 
of £16.000 (£24.000). Tax for the 
period absorbed £38.000 
(£71.000). 


AFINANCLALIIMES SURVEY 

BUILDING 
METHODS AND 

MANAGEMENT 

June 23rd 1982 


The Financial Times proposes to publish a 
survey on Building Methods and Management 
in its edition of June 23rd 1982. This survey- 
will examine how major contractors have 
adopted a more aggressive approach to 
marketing, and how the suppliers to the 
industry have faxed. 


The survey will also include editorial coverage 
on: 

1. How the client, according to his need, is 
able to select a contractor with a particular 
management package. 

2. The role of the architect consulting 
engineer and chartered surveyor. 

3. Building systems: timber framed, steel 
framed, pre-cast, pre-assembled. 

4. The building materials sector. 

Copy date: June 9. 

For further information and advertisement 
rates p lease contact: 

CHRISTOPHER ROBERTSON 
FINANCIAL TIMES 
BRACKEN HOUSE 
10 CANNON STREET 
LONDON EC4P 4BY 

Telephone number 01-248 8000 extension 3246 
Telex 885033 FINTIM.G . . 

The size, contents and publication dates of surveys in 
tbe Financial Times are subject to change at the 
discretion of the Editor.- - - • 



SUMMARY OF RESULTS 

1981 1980 

' £ £ 

Sales 8,690,762 8.723,634 , 

Profit before tax 682.630 185.094 

Earnings per share . . 8-13p . . 4.51 p " 

Dividend per shire 4p 3p 

EXTRACTS FROM THE STATEMENT BY 
CHAIRMAN, MR. J. C NOKTHAM: 
ic This has been another extremely difficult year for the Group. 
Some improvement in demand did occur and this, together with 
the rationalisation measures, taken, has resulted . in improved 
trading figures. 

ic The purchase of the manufacturing activities of ESP Limited 
was completed in March and we are now moving the necessary 
plant and tools to our own modern lock factory m Wednesrield. 
We are confident that this acquisition will secure the future 
growth of our lode company under the brand name of Erebus. 
ic We have been forced to re-introduce short-time working in 
one or two factories, involving a comparatively small proportion 
of our labour force. In spite of this' all companies in the 
Group are now operating profitably and we still have ample 
capacity to increase output sufficient to meet any upturn in 
demand which is likely to occur. 

Manufacturers of Door Furniture. Window Fittings, Locks, 
Aluminium and 2in c Alloy Die Castings. Aluminium and Brass Hot 
Stampings, Steel Partitioning and Trade Injection Mouldings. 


gH British Mohair Spinners 

RESULTS SHOW A 
MARKED IMPROVEMENT 

Salient points from the circulated statement of the Chairman. Mr. J. Alan Clough, on 
the year ended 31 st December. 1981. 


The Group profit before taxshows a 
marked improvement on the figure for 
1 980. As a consequence the total 
dividend for the year has been 
increased by 6%. 

Trading conditions in worsted 
spinning were slightly easierthan in 
the previous year with more stable raw 
material prices,and stock reduction 

Residta in Brief 


Turnover 
Profit before tax 

Earnings pw share 
Dividend par share 

Tangible asset vafu« 
par sham 


•Excfudaa 


resulted in a much lower interest 
charge for 1981. 

Our policy of diversification into non 
worsted spinning interests is proving to 
be most beneficial in not only 
spreading the risk in times of recession 
but also reducing the effects of the 
textile cycle upon profits. . 


Group Subsidiaries 



1S8I 

1380 

Geo. Ackrayd Junr 

Commission eomhei* 

122.138,085 

£25.133.731 

Jeremiah Ambler (Ulster) - AVofsted spinneis 

E862.383 

£228.048 

CraftonYetfls 

Synthaticyaffi prweoors 

4.880 

4.00p 

4A0p* 

3.77p 

Keighley Fleece Mill* 
Stork Bros.' 

T. Met Engineering 

Property company 
, Woollen sonnets 
Acoustic engineers 

108.660 

110.72p 

W. B. & U, Atkinson 

Jerai . - ■ 

Special iR engfrors 
Handkalpingyara 

etsam \ 

k. wM 

McHerg & Aird 

_ Packing material ntemhenia , 







ril'T 'fwMktu 


% 


. Financial Times Thursday .May 13. 19S2 

Conpanies aatf Markets 


UK COMPANY NEWS 



2 1 


W oolworth tumbles to £2.4m loss 

(;>■■■ r.n jirnp-r!> Ji-puvt! 
iju: rhii '•seJiitlcd ^aie 

-".u *y»5*-f!i:.rk. income 


A DOWNTURN of £4.39ta fc,* 
resulted in F. W. Wool worth, 
the store group. plun?l rs^ tnt ■ 
the red in the three mentis *o 
April 30, 19SU. There were pre- 
tax losses of EiJZoiii, coisiusri'ii 
with profits of £2.04 m, for the 
^ame period of 1931. 

The pre-m fleure- v.-;rs ,-rf!--r 
depreciation up from tti.lini ir, 
£3. 63m and interest charge.- con- 
siderably higher a: i'::.33;is 

against £2.91ra. The dtroerorj -;.,y 
the rise in deprcciaticn reflccis 
the outlay on capital expendi- 
ture. and the interest charge 

includes £500,000 on bomra'in^.i 
for the Dodge City aeemsitinn. 
These borrowings have now been 
extinguished by monies received 
from property sales. 

There was a ml return 


>f ( T«7*. 0'jn> > included 

,r. :\u j.rt *j;’.ure. 

Ft.'-: '.'iii.ritr l urn*. ‘•i-r rose by 
X.J wr o-nl :rr«m aJIOMct 10 
I’.!!!, r.-at this ev eluded run- 
<•:*-> on se- 1 VAT. Last 

y-ief.. fi ; ::r.f j i,»Ve ist-j-n appro- 
fffjately ararr.fiir'j. Trains pro- 
‘ ■j >Np;»td fn.ir: £5*3nt to 

t-.j 'ji ... 

There ws. -i m:: credit of 
icL'i.Wfl u charge of 

aTlSUW. 

T.'-.vfi.' '.i extrciQfdjnary 

Cftffi.fjs nf &5JNN), atol 

farci^n currency credits of 
.CSV- J i-Vj tr.’-i. re- ultiag m a net 
i-jv ? > e f 'r »j?m • i t S3rn profit i. 
Tiu- loss per ordinary 25p slock 


unit was Q,4p fOJ5p profii) 

Tlie directors say B anti 0 
Croup achieved a profit before 
tax of 1567,000 after intiMfM 

charged on ils borrowings from 
external ami group sources. 

• comment 

This lime last year Woolworth 
was revealing that Operation 
Crackdown, il& attempt to regain 
volume by culling back on gross 
margins, had done a little for 
volume — which rase by about 2 } 
per cent — but bad actively 
damaged first quarter profits. 
Margins have been restored, but 
since turnover in the Woolwnrth 
stores is up by only \ per cent 
volume must be well down. Costs 
have not stood still, with wages 
up by 7 per cent and other over- 


head costs by around a tenth, 
net marRiiLs—beriire interest and 
depreciation— fell by almost a 
third. Since that takes arrouni 
nf a contribution from E&Q *:! 
more than £567,000. its stated 
profit after interest, the variety- 
.store margins must have slipped 
more sharply still. Now that 
£20m cash has come in from tho 
property sales which propped up 
last year's proGt and luss account, 
the interest charge' should return 
to normal in tho current quarter. 
Tho shares yield almost 13 per 
cent at 47p, and although \Vonl- 
vrorth describes its first quancr 
as the least significant thirds 
may have to improve if even the 
reduced 13S1 level of distribution 
is to be repeated this year. 


Lee Cooper expands by £3m 


A RISE of £2. 54m in £O.OOm in 
pre-tax profits has been show;; 
by Lee Cooper Group for i«isi 
despite what the directors 
describe as “a very difficult 
year.” Turnover also moved 
ahead from £73. 05m to £77m. 

Second-half profits improved 
from £2.22 m *u £4.4Sin 

The directors of lius manufje- 
lurer of jeans and casual wear, 
say that although 19S2 v.:i» : ,ur. 
be difficult they are confident of 
maintaining the level of pro'.iL- 
achieved for the year und-.-r 
review. 

Group result* were con«ider- 
ably distorted by exchange cur- 
rency charges but similar c:s- 
tortions have not materia !iy 
affected results for the current 
year. Although various cars- 
pames suffered subsl-mtia' 
losses as a result of tho siroi?- 
of the U.S. dollar and Lie Sv. : ■ % 
franc, this was largely compen- 
sated by gains realised fcy 
companies. 

European subsidiaries con- 
tinued to make safivfar-t'iry 
progress. Although the UK 
returned to profitability. t»e 
directors have decided to eio^c 


.r. a; Harold Udl and 

prnduct’oa at 
il- i '. Ai u: v.;;k-:i more profitable 
pr: i.;r: Iil- ail.ieved. 

t; ;• pfi pe.-i}- a: Harold Hill 
rji'c . vv.L-r.ft.-.e arid costly 

'.r ; --rs :»n<i _-.Tt-:st difficulty 
i< ii .vceri ev r.i-nceil m recruit- 
^.'r(;LL!^ Lliuor. 

Tr:e tc.ir.n-hi ?» pariiculdrly 
i t-.".vh;<' \u C- j ft rumatV 
is'e.: uiv A mono -jmse that 

a.-- very important !o *JiC com- 
p'.rj. . re :iio French and 
!?ei - .::an franc, and the Scan- 
c. rr.-. i.tr cur rcr.c e- - .. all of 
wl.ivi: unsettled. 

T:iv .-sc lolal dividend i; being 
r: - - j r - 1 2.7o75i; =:* .*{.017p 
.vi'.n - iilijs: uf l.S57n. Earntn^s 
; r 23 . v:. r._- arc ijivop. ji 

r.”e-i.:X -»r^2.Ti vvvre struck 
jf!er '.o'.vt interesi rh.ir.es of 
£!.a'J.v Tax i-kik more 

’l 57m .» •aij-.s'. f2.s!:n. 

A r -:::fw*r;-ies j.nd I'Xtra- 
i:ri.: !*;■!> ...f riSSjDOO 

iricl si- Jlf.i.i a?tr:butahk* 
"_•:!! ere trd u [ £4.73m 
'( fi«:« w« i 

• comment 

Fv».'!i«v..p-.; sever. years of 


rapid profits growth, 10SU saw 
a major setback for Lee Cooper. 
The 39 per cent rise in pre-tax 
profits can be seen as recovery 
m a ho less competitive trad- 
ing environment. At the attribu- 
table level the mosl significant 
factor was Ihc absence or £!.3in 
currency losses, which almost 
wiped out 1980‘s profits. In the 
UK Lee Cooper's rulhles* de- 
stocking has been rewarded, with 
a £1.3iu tumround into profit/; 
of £300,000. But the growth of 
the 1970's is at present still only 
a memory. Belgium and France 
appear to have put in the best 
trading penfumnince, but 
February's dcvalunhon nf the 
Belgian franc was an unfortunaie 
start to the current year. Overall 
margins were helped by relative 
stability in raw material costs. 
Last February's £25m Czech deal 
has not yet led to much in tho 
way of profits, but the market 
behind the Iron Curtain is still 
seen as something of on El 
Dorado by jeans mao uracturors. 
After the results the share price 
fell 3p to 132p. yielding about 
3 per cent, and on a p/e of 
around 5. 


Yearlings 

total £20m 


Reliant confident of breaking even as losses erode 


After reporting a substantial 
reduction from £597. (sX) :o 
£$4,000 in pre-tax losses for l!.e 
half year lo March 31, 19S2. Mr 
J. F. Nash, chairman of Ri-iian-. 
Motor says lie is confident that 
a break-even positiun will be 
achieved fnr the current financial 
year. Turnover of Hus motor 
vehicle manufacturer fell from 
£6.1m to £5.1m. 

He says the loss incurred is 
in line with company budgets 
and the anticipated diTicuit 
trading conditions have 
continued. 

The Rialto, launched in 
January of this year, has been 
particularly well-received, he 


z:-i and demand f»ir the car has 
beer cn.cr.i- raging. Sales are 
<r-:ceej;;na t!ivs'r for the same 
n‘?r s ud of IES 1 by some 10 per 
cent, while tile overall market 
fc: s sho-.m no grovrih. 

Mr N'j-h “ays the success of 
?::a!to m ii!»:>or-ant as it provides 
the cciitpanv with a sound 
e.wr.itiTiss base for future 
development. 

7 ; :c first shipmentb uf com- 
poncnls under the agreement 
with Ss.r.nsv Auto Industries of 
!r.d<- have taken place, and the 
production of Kittens in Banga- 
lore has now commenced. He says 
the ccntrihutj&n of this project 
to P.eiwDt’s performance, while 


relatively small during this 
financial year, will increase in 
significance in future years. 

The company's plastics sub- 
sidiary. Reliant Industrial 
Mouldings, is growing slowly and 
continues to be a sensible 
diversification, he says. The other 
areas of the company's business, 
in general, reflect the state of 
the economy, but are beginning 
to share in its slow recovery. 

The loss per 5p share was cut 
from 9.3p to 1.5p— at the year- 
end the loss was 17.6p. The 
shares of this close company are 
traded on the Unlisted Securities 
Market 


Yearling bonds totalling £20m at 
13i per cent redeemable on 
May 18, 19S3, have been issued 
tills week by the following local 
authorities. 

Aylesbury Vale DC £0.5 m; 
Castle Morpeth BC £0.25m, Hack- 
ney (London Borough of) £2.5m; 
Middlesbrough (Borough of) 
£0.5m: Sedgcficld DC £l:n; War- 
rington BC £0-5m; Worthing BC 
r02.*5m: Bndgnonh DC £0.25m: 
Cumbernauld and Kilsyth DC 
£0.5m; Gateshead (Borough 
Council of) £0.25m; Lancaster 
City Council £0.75m; Newham 
(London Borough of) £0.25ra; 
Presell DC £0.25m: Tamworth 
(Borough of) 10.35m; Swansea 
(Council of The City of) £lm; 
Lambeth (London Borough of) 
£D.5m: Grampian Regional Coun- 
cil £2m; Ashford BC £0.5m; 
Chelmsford BC £0.25m; Dcrwctfi- 
side DC £02l5i7i ; Nortli Tj-ncsidu. 
Metropolitan BC £J.5m; North 
Warwickshire BC £02I5m; Slough 
( Borough of) £0.5m; Warrington 
BC £0.5m: West Wiltshire DC 
£0.5m; Bedfordshire CC £0.5m: 
CoLswokl DC £0.25m; Hartlepool 
BC £0.75m; Newbury DC £0.25m: 
Rushmonr BC £0.5m; Sheffield 
(City of) £2m. 

Rhymney Valley DC has issued 
£fl.25m of 13? per cent bonds at 
par for redemption on May 8. 
19S5, and Higlvland Regional 
Council has issued £lm of 13( 
per cent bonds also at par foi- 
redemption on May 18, 19S3. 


Drayton Japan 

Following the annual meetin. 
held on March 26 at which mem- 
bers of Drayton Commercial 
Investment Company approved 
the change of investment policy 
of the company to concentrate 
oo investment in Japan, approval 
has now been received from the 
Registrar of Companies for the 
change of name to Drayton 
Japan Trust, which will take 
immediate effect. 



'A 


Jfm 


•' The Cf-j. • ■ a ;:-‘a 

"“'Ifc..,. « 


iSasfww" -■ 




contract 


"/n , t 41w '' 




rj* 

Sh-*t , S 40ns 

S!.<P Ptl _ •*»* Wo*? 

. stn r ,, 



HMRIK- 

BUSINESS DKTIOHARY 

English-French and French-English 



This new English-French dictionary is de- 
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business documentation generated by com- 
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Cafd number l i i i I I I i i I I I ' M , M , I — I 


Bulmer and 
Lismlb falls 
to £0.57m 

WORSTED SPINNER BuRnrr 
anil Ltunb t Holding:*) ropfris 
taxable prctit% cown from 
£776,447 rn i'571.‘j5S in I he year 
to March cO l'iyj, erj lower lures- 
r.ver nf i27.3Sm coct^ared with 
£2S.sem, 

Tho final (Jividond (s main- 
laiaird at U.ITp net por ‘JOp share 
bringing the f tal for the year 
to 3.R2p to.SITIJn) which absorbs 
£327,547. Stab-d earnings per 
share foil to fr*,nt fi.OSp. 

The diretfors spy that Ihe 
reduced level of 5 '.erf in?, lower 
interest rates, investment in 
modern planr .-'n;? luchniques and 
a' strong, hairnet . 1 «lseot ensure 
Uie company is woli equipped to 
parlicipa’o in a re“,*vcry in trade 
when ft is fijrthcnniicg. 

Pre-la?; prcfis were struck 
after in’ or.: •: received of 
£15S,3)2 jj.5::.$5fn. interest pay- 
able nf . £5S.n74 (£1G8,436) and 
depreciation nf £505.138 
(£487.774 1 . Tax lunl; £93,000 
( £251.000 K leaving net profits nf 
£47R,fi.*W t £525.447 » Additionally 
there were- er:traurdinary credits 
Iasi time uf 11.84m. 

At the iulf year stage the 
group was already behind with 
pre-tax profits ol £239.000 
(£459.000) and turnover of 
£1 3,29m |£li,9Gia>. 


Nurdin & Peacock over 

£10m: pays 2. 




SHARPLY HIGHER profits wore 
returned by Nonfia and Pea- 
cock for 19S1, the pre-iaa: fiaurc 
emerging at a record £1 0.09m, 
compared, with £B.65m for the 
previous 53 weeks. The second 
bai£ contribatioc rose from last 
Lime's £5. 94m to £8&c. 

Full year sales of this cash 
and carry wholesaler also 
reached a peak, rising by £55m 
to £ 400.35m. 

The taxable surplus was after 
pension fund allocation of 
£250,000 (£650,000) and staff 

share participation scheme of 
£531.000 (£455.000). 

Tax took £3.6Sm (£2.7Sra), 
leaving an attributable blaance 
of £6.4m (£5.S7ra). 

Stated earnings per share rose 
from, an adjusted lO.lp 10 Up 
and a final dividend of 1.575p 
(1.3125p adjusted) raises the 
net total from an equivalent of 
2J25D, to 2.7p per lOp share. 

Mr W. M. Peacock, the chair- 
man. says tuat competition con- 
tinues tob extremely fierce 
in all areas. The sales increase 
held up above the rate of in- 
flation throughout the year and 
so far continues to do so. 

He adds that The lower margin 
goods sold continue to make up 


a bjgger pronorliun of ' the 
group's’ s.i!ks mix— partly 
because of the considerable in- 
crease in cigarette prices during 
ISil— and this is bound to have 
some effect oo its profit per- 
centage. 

The group's . own-brand 
products had a good year. 

Budding is ‘.vail under way 
on a replacement In Wimbledon 
for the branch at Raynes Park 
and a new site has been pur- 
chased near Rochester airport, 
which will replace the Chatham 
branch. 

Both Ihese replacements 
should be operational in 1985 
and will add approximately 
68.000 sq ft. In addition, ex- 
tensions arc bems made to the 
Aldershot, Nottingham and 
Sideuo branches. A new branch 
at Nuneaton was opened in 
April.' 

CCA pre-lax profit fnr 19S1 
emerged at £7.S2m (£7. 04m) 

• comment 

Nurdin & Ivacock had a little 
of tho edge knocked off its pronto 
momentum *n the second half 
as tighter perianal rpecdjn? 
meant that vofiins? gains were 
more towards the lower margin 


«oods Even so the group con- 
unuei its solnd growth pattern 
derived L r otn a formula frf pul- 
ling high volumes, attracted by 
long standing reputation, 
through a steadily increasing 
square footage of warehousing. 
Despite its strong cash position 
the grout* is not an acquisitive 
animal, "its progress, therefore, 
remains very much linked to the 
fortunes of tbe independent 
retailers where there are signs 
that, after many years nf serious 
dociine in the face of super- 
market competition, some are 
learning how to stand their 
ground. Currently N & P sales 
are showing n degree of 
buoyancy. Yesterday the shares 
^cre up 2p at 14Sp' for 3. fiiny 
iu::ed p/e which at near 175 
looks to further strong growth. 


ICI conversion 

Holders Of a further 50 
Imperial Chemical Industries’ 
SI. 000 6’ per tent- convertible 
guaranteed bonds due in 1997, 
hive exarcised their right of con- 
version inio ordinary stock. The 
number of bonds now outstand- 
ing is 28.020. 


t,. : *■ . , ' 



-r- . r : J.«i n . i-a 



o Vi A . K . 

;! ^ & a 

t'jja *•'. ; >=a cdskt 1 


A S aaaa sry cf - ihe Sfcetemeat 

ffTBl Trgi&a . Cavzd Stevens. 

Although there was no improvement 
in trading conditions in 1981. the 
peri'c-rrr.iuice of United Newspapers 
compares favourably \-1th others in the 
print ingindt’.stn: 

The recession sensed to emphasise 
the strengths and weaknesses of each of . 
our pro fi * cen tres. Our magazines and 
most o four weekly newspapers performed 
well. The printingcompanies. which 
continue to lose money, had a veiy difficult 
yeas. 

The Directors have recommended an 
unchanged Final Dividend of 7.5p on the 
Ordinary Shares. An Interim Dividend of 
4.5p has already been paid, making a total 
of 12p for the year, the same as for 198D. 
The dividend will be covered 1 .24 times on 
eami ngs for the year*, excluding 
extraordinary items, equivalent to 14.Sp 
tier Ordi nan’Share. 

The major investment during the 
year was in the new television contracting 
companies. We have sold the majority of 
the hives tmen i portfolio ofour recen t 
acquisition. The Colonial Securities Thjst 
Company Limited. forsome£ll million in ■ 
cash which wi3 bea\ , ailablefor the 
expansion cfUnited’s business. 

As for tlie future, i t is by tackli ng 
casts at each level, by rationalisation such 
as our centralised pilnting project at 
Wqgan. and by cnergeticalh' exploiting the 
opportunities a\ r ailable to us through 
advanced technology in newspaper 
production Lhat we can m£*intain our 
profitability and. indeed, expand. 

In the face of increasing compel it Ion 
from the electronic med ia revolution, 
newspaper companies must be able to 
make maximum use of die new methods of 
Inputting and retrieval of information for 
both their printed newspapers and for 
their participation in otheroutlets. We 
plan to make progress in this area in the 
course of the vear. 


gymmsiy ol Results 

Year December 


19S1 

£t)O0 

1980 

£'000 

Profit before exceptional 

Item 

4.039 

4.536 

Profit before taxation 

3.638 

4.536 

Profit al'ter taxation 

2.245 

3.006 

£::(raordinar> r items 

157) 

850 

Profit attributable 
urlbe members 

2.186 

3.856 

Di/idc-nds 

1.832 

1.832 

Retained profit 

356 

Z024 

Ordinal?,; Dividend co\;er . 

1.24- 

1.67 1 

Sami ngs.pcr ordinary share 

14.gp . 

2Q.Sp 


Fora copu of tf)eiteport& Accounis. please 
ix'.nui to the Secretary. United Newspapers pic, 
23-C7 Tudor Street. LondoTiEC4YQHR. 


£• .-I i f 

v. :.ai 

~WM 


’O 




United Newspapers pic 














28 


Financial Times Thursday May ,13 1982 


ELBAR INDUSTRIAL P.L.C. 

Results and extracts from The Viscount Hood’s statement issuedwith the 
Company’s Report and Accounts for the year ended 31 st December, 1 931 


RESULTS 

TURNOVER 


1981 

£ 

65,992/195 


1980 

£ 

59798566 


(LOSS)/PROHT BEFORE INTEREST 
(LOSS) BEFORE TAXATION 
(LOSS) FOR THE YEAR 
DIVIDENDS 
(LOSSES) PER SHARE 
DIVIDENDS PER SHARE 


(428750) 

(2757719) 

(2752,741) 


(5578p) 


87,119 
(1.619.954) 
( 1 ,079,215) 
65714 
(33.05p> 

100p 


ii-J 


I9S1 has proved an unhappy year for Elbar.- When I reported a. year ago your Board 
expected a marked improvement in the Group's results as compared with 1980, In fact, results 
are worse. 

The shortfall in the results then expected can be related in large measure to two unfortunate 
events in the Special Products Division. 

(a) Around the time of the announcement of the Rights Issue in May last year. Elbar 
Engineering Limited delivered to a customer what appeared to be a satisfactory and 
profitable contract for flotation tanks for a North Sea Oil Rig. Following delivery, 
failings were found in the steel fabrication which, on a further investigation proved 
to be serious. As a result, rectification work was required on a major scale and 
within very narrow time limits in order to avoid delaying the float-out date of 
the rig. In consequence, Elbar Engineering Limited incurred rectification costs of 
£878787, identified in the year's accounts as the exceptional loss. Principally as .a 
result of this disruption to business, Elbar Engineering Limited suffered further losses 
in I9ST, and by the year end losses of this subsidiary totalled nearly £17 million. 

(b) Sales by industrial Engines (5ales) Limited before the end of the financial year were 
considerably less than expected. Large stocks of generators were sent to Iraq for 
the “October Fair" in Baghdad and a substantial quantity remain unsold. 

Both these factors have resulted in a higher average level of borrowings than anticipated, 
with the consequent effect on interest charges. 

As expected, 1981 has been a particularly difficult year for motor dealers. Whilst operating 
profits were lower than in i960, this was not a bad performance under the difficult trading 
conditions which existed throughout the year. Conditions continued to be very difficult for 
sales of agricultural equipment, although this Division achieved a small operating profit in 
contrast to a substantial operating loss in I960 and has continued to reduce its use of capital 
effectively. South East Lines Engineering has had a somewhat disappointing year, due to the 
low level of Ford engines delivered for reconditioning. This business Is beginning to improve 
and a favourable price adjustment could be reflected in 1982 to compensate for low off-take 
in 1981. 

Since the end of 1981 the Group has disposed of Elbar Engineering Limited without further 
loss. Ownership of the related premises has been recained by the Group. These premises 
have been leased to Elbar Engineering Limited, which is changing its name to avoid reference 
to “Elbar". The consideration for the sale of this company was equivalent to the accounts 
value of its working capital and machinery at 31st December, 1981, 

Your Board is giving constant attention to the reduction of the Group's borrowings^ 
Particular emphasis is being given to reducing the financial involvement in Industrial Engines 
(Sales) Limited and to the disposal of properties considered to be surplus to the Group's 
requirements. 

At the Annual General Meeting on 4th June. 1982 shareholders will be asked to adopt 
New Articles of Association for the Company to bring them up to date with current law 
and practice. Under the new Article 54 provision is made for an increase in the Group’s - 
borrowing powers to twice the consolidated capital and reserves.. Whilst it is not intended 
in normal circumstances to use these powers to the full, it is considered that m view of 
the exceptional losses of 1981 and heavy stocks, it would be sensible to increase the borrowing 
powers in order not to restrict profitable opportunities in the Group as the economy comes 
out of recession. 


it is quite impassible to make a forecast for the whole of 1982. The different sections 
of the business have had varied experience in the first quarter of 1982. Elbar Engineering 
Limited has been sold so that neither profit nor loss has arisen. Industrial Engines (Sales) 
has operated at a loss, due in large measure to the heavy stocks and the consequent financial 
charges. The remainder of the Special Products Division operated profitably during the 
quarter. Some improvement in the Car and Agricultural Divisions was evident during the 
first quarter as compared to the same period last year. 

As a conclusion 1 must express the Board's appreciation of the hard work of all Group 
staff throughout another very difficult year. 


The Company’s Annual General Meeting will be held in the Coundl Chamber of the 
Chartered Insurance Institute, 20 Aldermanbury, London EC2V 7HX at 7030 sun. on Friday, 
4th June. 1982. 


Cospaaies and Markets 


UK COMPANY NEWS 


Folkes Hefo 
£0.7m deficit 


Wm. Collins 
seeking 
job cuts 


ENGINEERING group John 
Folkes Hero finished 19S1 with 
a pre-tax loss of £724,000, after 
a £1.35m profit in 1980 and a 
six-month deficit of £389,000. All 
but £10,000 of the full year loss 
was incurred by the engineering 
division. 


BOARD MEETINGS 


By Gareth Griffiths 


Turnover was lower at £63.Q2m 
(£70.28m). 

The directors note that, 
although the effects of the reces- 
sion continued throughout 1981, 
current trading shows a gradual 
improvement They are therefore 
recommending a maintained final 
dividend of 0.9p net per share, 
snaking a total of 175p (1.4p). 

Loss per 5p share is given as 
2p, against earnings of 3.4p, and 
net assets per share after in- 
corporating property revaluation 
at 54p (5$p). 

Interest payments were lower 
at £lm, against £1.15m, and tax 
.took £220.000, compared with a 
£271,000 credit Extraordinary 
debits of £499,000 (£419,000) 
were recorded. 

A breakdown ol the pre-tax 
figure shows that the engineer- 
ing division lost £2. 16m, against 
a £995,000 loss. It had been pre- 
dicted that redundancy and 
rationalisation costs of about 
£400,000 would affect 1981 
figures. 

The merchant ng division lost 
£10,000 (£583,000 profit), and re- 
duced profits were shown by the 
industrial property division, 
£126m (£1.4Sm), and housing, 
£17S.000 (£283,000). 

On a ctjrrent cost basis, a pre- 
tax loss of £1.28m was shown, 
compared with a £62,000 profit 


13i* following companies have notified 
daiea of boaul nestings to the Stock 
Exchange. Such meetings era uiua-Hy 
held far the purpose of considering 
dividends. Official indications are not 
available as so whether dividend# are 
intsnma or finals end Hie subdivisions 
shown below are based enainty art last 
year's timetable. 

TODAY 

Interims: Barlow Rend, Davenports 
Brewery, National Bank of Australasia. 
North Midland Construction, Vaux 
Breweries. , 

Finals: Bank of Ireland. Hawtin, Holt 
Uoyd Internationa I, King end 5iiexson. 
Kwik-Fit (Tyres and Exhausts), Porter 
Gtvadbum, Ssccombe Marsh*)! and 
Campion, TR Technology Investment 
Trust, Warner Estates. 

FUTURE DATES 
Interims — 

Bftjsmel Brothers - 

Fulcrum Investment Trust ... 

Redman Rsenan Internationa) 

Finals — 

Cos art ... 

Duport 

London Treat . — 

Parkland Textile 


WILLIAM COLLINS, Britain’s 
largest independent commercial 
publisher, is holding negotia- 
tions with its unions over redun- 
dancies at the company’s .Glas- 
gow operation. 

Mr Ian Chapman, the com- 
pany’s chairman and chief 
executive, told the Collins’ 
annual general meeting yester- 
day that given the satisfactory 
conclusion of negotiations pre- 
sently under way “and the many 
initiatives being, taken to attract 
additional orders into the plant " 
Collins could move forward with 
confidence. 


May 24 
May 21 
May 19 


TrcHi ah Minas Malaysia 

Wert am Brothers 


May 24 
May 18 
May 19 
May 25 
May 14 
May 27 


Talks started last week and 
the company wants to see the 
redundancies implemented by 
the end of May. No figure has 
been pubUcally stated although 
Mr Chapman is looking for 
reductions of under 5 per cent 
or the total Glasgow workforce 
of around 1,600. 


• comment 

It was expected, that "Folkes Hefo 
would do worse in the second 
haM, but the outcome is nonethe- 
less below expectation. 
Engineering is stiil tough going, 
the first-half loss of £0-S5 m 
having been extended to £2.2m 
at the year end. MerGhanting 
also went into loss, and a furni- 
ture company had to be closed 


after only 18 months’ trading. 
Housebuilding kicked in £280,000 
before tax at the interim stage, 
but then went into reverse, 
losing £100,000 in the remainder 
of the year, with only a glimmer 
of improvement since. There 
was even a disappointing total 
from the industrial property 
division, where the rent roll 
diminished as other group 
businesses — trwo-thirds of the 
tenantry— drew in their horns. 
Engineering order books remain 
very short, and although demand 
may be fractionally better, the 
only real reason to expect a 
return to the black in 1982 is the 
saving from 1981’s redundancies, 
which cost £474,000 above the 
line, and the closure of a few 
peripheral Joss-makers. For the 
moment a yield of 12.7 per cent 
— after an unexpectedly generous 
final — should at least underpin 
yesterday's 15p price for the non- 
voters. 


Jessups £0.26m loss 


AN “extremely disappointing" 
pre-tax Joss of £260,758 for the 
six months to February 28, 1982. 
is reported by Jessqps, motor 
distributor group. 

In the same period a year- 
earlier, the loss was £19,641. Full 
year turnover advanced from 
£13.56hrto £15. 15m. 

The interim dividend is being 
omitted, against a Ip payment in 


This ado(^iiseme7d is issued in compliance wi5i the requirements of ^CounalofTkeStockExriuxnge. 
It does not constitute an offer of, or limitation to the public to subscribe for or to purchase, any securities. 


$100,000,000 


GMAC Overseas Finance Corporation N.V. 

( Incorporated in the Netheriands Antilles) 


15%NOTESDUEMAY15, 1987 

Payment of principal and interest uncon d itl an a ll y guaranteed by 


GENERAL MOTORS ACCEPTANCE CORPORATION 

(Incorporated in the Stefe of New York, USA.) 


ThefbUawznghaneagreed to subscribe fimtheNotes: 


mRGAN HANLEY INTERNATIONAL 


ALGEMENE BANK NEDERLAND N.V. 


AMRO INTERNATIONAL 
Limited 


BANK OF. AMERICA INTERNATIONAL 
limited 

BANQUE GENERALE DU LUXEMBOURG S A. 


BANQUEBRUXELLES LAMBERT SJL 
$ BANQUE NATIONALS DE PARIS 


CHEMICAL BANK INTERNATIONAL 
Limited 

DKITTECfTF. It A NK A KTfE NGESIETISC RA PT 


MERRILL LYNCH INTERNATIONAL &CO. 


CREDIT SUISSEFIRST BOSTON 
Limited 

MANUFACTURERS HANOVER 
Limited 

SAimONBROTHERSINTEmmONAL 


societEgenErale 


UNION BANKOF SWITZERLAND ( SECURITIES > 

Limited 

WOOD GUNDY 
limited 


SWISS BANKCORPORATION INTERNATIONAL 
Limited 

WESTDETJTSCHELANDESBANK GIROZENTRALE 


The Notes, in the denomination ofUJS. $5,000 iss tied at 100 per cent , have been admitted to the Official List by the Council of 
The Stock Exchange, subject only to the issue of the temporary Note. Interest is payable annually in, arrears on May 15, 
commencing on May 15, 1983. 


business hours on any weekday (Saturdays excepted) up to and including May 27, 1982 fromtke brokers to the issue: 


Miry 13, 1982 


Cazenoee & Co., 
J2, TokenhouseYard, 
London 
EC2RZAN. 


I. J. H. Nightingale & Co. Limited 


27/28 La vat Lane London EC3R, 8EB 


Telephone 01-621 1212 


1981-32 
High Law 

Company 

Gross Yield 

Price Change d iv. <p) % 

Fully 

130 

100 

Asa. Brit. Ind. CULS... 

123 

_ 

10.0 

7,8 



/5 

62 

Ai-reprung 

72*d 

_ 

4.7 

6.5 

11.4 

15.8 

Si 

33 

Armitaga & Rhodes 

43 

__ 

4.3 

10.0 

3.6 

8.1 

MS 

187 

Bardon Hitl 

203 


9.7 

4.8 

9.9 

12.0 

107. 

100 

CCL Hoc Conv. Pref.... 

107 



15.7 

14.7 



265 

240 

Cindico Group 

266 

— - 

20.4 

10.0 

10.7 

12.0 

1W 

fel 

Deborah Services ...... 

62 

__ 

6.0 

97 

3.1 

5.8 

131 

Sf 

Frank Horsall 

129 


6.4 

5.0 

11.6 

23.9 

83 

29 

Frederick Parker 

76 


6.4 

8.4 

3.9 

7.4 

78 

46 

Georgs Blair 

54 






102 

33 

Ind. Precision Castings 

38 

_ 

7.3 

7.4 

7.1 

10.7 

109 

100 

Ins Conv. Prel 

109 


16.7 

14.4 



113 

94 

Jackson Group 

99 

— 

7.0 

7.1 

3.1 

7.0 

laO 

IDS 

James Burrough 

113 

— 

8.7 

7.7 

8.2 

10.4 

334 

238 

Robert Jenfctng 

242 

— 

31.3 

12.9 

3.4 

SB 

66 

.SI 

Scruttons "A" 

66 



5.3 

a.o 

10.2 

9.4 

ZQ 

159 

Torday & Carlisle 

159 

_ 

10.7 

6.7 

5.1 

9.5 

15 

10 

Twinlock Ord. 

14 

— 







so- 

66 

Twinloch 15oc ULS 

80 

— 

Ifi.O 

ia.B 



44 

25 

Unilocfc Holdings 

25 

— 

3.0 

13.0 

4.5 

7.(1 

103 

73 

Waller Alexander 

63 

— — 

6.4 

7.8 

5.4 

9.5 

283 

212 

W. S. Yaatas 

230 

— 

14.5 

6.3 

6.0 

12.0 


Prices now available oq, Prsstel page 43146, 


EUROBONDS 


The Association of International Bond Dealers Quotations and 
Yields appears monthly in the Financial Times 
It will be published on the following dates: 

1982 


WEDNESDAY 16th JUNE 
WEDNESDAY 18th AUGUST 
WEDNESDAY 13th OCTOBER 
TUESDAY 1 4th DECEMBER 


TUESDAY 13th JULY 
TUESDAY 14th SEPTEMBER 
THURSDAY 11th NOVB4BER 


There is a limited amount of advertising space available each month 
If your company is interested in taking advantage of 
this offer please contact: 


THE FINANCIAL ADVERTISEMENT DEPARTMENT 
on 01-248 8000 Ext 3266 or 3389 


the previous year. However, it is 
expected that a final payment 
will be made. The 19S031 total 
of 2p was paid out of a taxable 
profit of £90,000. 

Mr Alan Jessup, chairman, 
says the loss is disappointing 
following the improvements 
made last year. The recession 
has continued and trading condi- 
tions have been difficult Results 
in March and April have been 
good and a profit is expected in 
the second half, but it . is doubt- 
ful whether it will be enough to 
offset tie first-half loss. 

The new Vauxhall Cavalier was 
well received by buyers but sup- 
plies were limited at first Ford's 
market dominance helped both 
main dealerships to stay in small 
profit. Bedford operations were 
bit by the depressed commercial 
vehicle market. The leasing fleet 
was reduced as used vehicle 
values continued to fall. 

It is imperative to consolidate 
the group's stronger areas, the 
chairman says. Losses and low 
profit centres roust be eliminated 
to release capital for more pro- 
fitable investment 

The costs of closing the Strat- 
ford business and selling the 
group's interest in the Southend 
subsidiary cannot yet be deter- 
mined. 'Net assets there at 
February 28 came to £1. 34m, in- 
cluding freehold properties at a 
net book value of £655,000. 

After taking into account the 
transfer of some activities to 
other group companies, it is ex- 
pected that realisation of the 
investment in these operations 
will reduce borrowings by about 
£lm. Group borrowings at 
February 28* excluding those 
directly related to vehicles on 
lease, were £1.74m. 


Collins made pre-tax profits of 
£4.33m on a turnover of £73.4 lm 
for the 12 months ending 
December 27 198L Mir Chapman 
said that Collins had doubled its 
profits in the year and had. 
established a secure base on 
which to build for the future. 

“ With no relaxation on public 
expenditure, with continuing 
high interest rates and with con- 
tinuing recession at home and in 
our main overseas markets, it 
would be a brave person to 
prettiot that 1982 would, be any- 
thing other than a bard year of 
business, perhaps even tougher 
than last,” be said. 

Mr Chapman described the 
atmosphere at the AGM as sup- 
portive and with no trace of 
the trauma that overlaid the com- 
pany for much of last year 
during the attempted take over 
by Mr Rupert Murdoch’s News 
International. 

Mr Chapman said that Collins’ 
objective was to build a solid 
reliable business with real pros- 
pects of long term growth and 
development. The publishing 
industry bad seen substantial 
redundancies and closures else- 
where and he said that there 
were continued reports of the 
difficulties facing publishers. 


Brentnall 
Beard expands 
to £62,000 


An increase in taxable profits 
has been shown by Brentnall 
Beard (Holding?) insurance 
broker, for the six months to 
March 31 19SL 

The surplus rose from £28,000 
to £62,000 with associate losses 
last time of £25,000. Turnover 
was lower at £325,000 (£388,000) 
Earnings per share edged ahead 
from 0.2p to 0.5p. 

The directors say the company 
continues to have strong finan- 
cial resources. 

In the last full year pre-tax 
profits stood at £240,000 on turn- 
over of £825.000. 

An interim dividend cannot 
be paid say the directors — the 
last payment was a total of 
0.572 p in 1978. This is because 
arrangements have not been 
made for the conversion of the 
share premium account, which 
stood at £332£22 at September 
30 1981, to a free or distribaable 
reserve. 


Structastone 


A compulsory winding up 
order made on April 26 against 
Structastone has been rescinded 
in the High Court and the 
petition dismissed by consent. 


final dividend will be reviewed 
in the light of the results for 
the full year. 

The directors add that the re- 
sults for the six months to 
March 31 1981 have been re- 
stated to bring the accounting 
policy for tax in line with that 
adopted at the year end. 

Tax this time took £20,000 
(£13,000). Attributable earnings 
emerged higher at £42,000 
(£15,000). 

A current cost statement has 
not been prepared as the 
directors say the results do not 
differ materially from those in 
the liistorical accounts. 



Five Arrows Fund N.V. 


2 . 


3. 


5. 


8 . 


Established in Curacao (Netherlands Antilles) 
Notice of Annual General Meeting of Shareholders 
to be held on June 3, 1982 

Notice is hereby given that the Annual General Meeting of 
Shareholders of Five Arrows Fund N.V. (“the Company") 
will be held on Thursday, June 3, 1982 at 10.00 o’clock in the 
forenoon (local time) at the offices of the Company. 6 John B. 
Gorslraweg, Curacao, (N-Aj for the fallowing purposes: 

L To approve the Company's annual accounts for the 
financial year ended December 31, 1981. 

To declare a dividend for the year ended December 31, 
1981. 

To elect a Managing Director for the ensuing year. 

To elect an Advisory Board for the ensuing year. 

To ratify, confirm and approve the acts of the Managing 
Director and the Advisory Board. 

Proposal to appoint Independent Auditors of the Company 
for the ensuing year. 

To decrease the authorised capital of the Company to 
US$250,000. 

To transact any other business as- may properly come 
before the meeting. 

The official agenda of the meeting together with the annual 
accounts for the Company's financial year ended December 31, 
1981, may be inspected by all shareholders at the office of the 
Company as well as at the offices of its agent banks, viz. 
Banque Rothschild S.A.. Paris; N.M. Rothschild and Sons 
Limited, London; Pierson. Heldring and Pierson, Amsterdam; 
Pierson, Heldring and Pierson, Curacao; Banque Bruxelles 
Lambert S.A., Brussels; Banque Privce SA, Geneva; 
Rothschild Bank A.G., Zurich; International Pacific 
Corporation. Sydney. 

Holders of registered, shares shall be entitled to vote at the 
meeting in person or by proxy. Holders of bearer shares shall 
be entitled to vote at the meeting on presentation of their 
share certificates or . of a voucher given oy any of the 
Company's agent banks stating that certificates in respect of 
the number of shares, specified in the voucher Jtavc been 
deposited with such agent bank and will remain in deposit 
until the end of the meeting. 

The Managing Director 

Intimis 



MINING NEWS 


Inco offering 
well received 



BY GEORGE MULMG-STANUEY 


CANADA’S loco, the world’s 
leading nickel producer, has put 
on sale a mixture of shares and 
warrants m a financing exercise 
designed to raise- around £42m at 
the current exchange rates. 
Brokers reported that the offer- 
ing was well received in Canada, 
the U.S. end the UK 

Between the initial announce- 
ment of «be plan in broad out- 
line at the end of March and the 
actual offer in the market, on 
Tuesday, Inco Increased the total 
number of shares and warrants 
involved, and shifted the balance 
between the U.S. on ode band 
and Canada and Western Europe 
on the other. 

A total of 5 -2m shares together 
with 2.6m warrants went on sale 
in Canada and Western Europe, 
somewhat lower than originally 
envisaged. The U.S. offer was of 
1.7m shares together with 850,000 
warrants. 

The shares and warrants were 
offered as units, each unit 
consisting of one share and half 
a warrant to purchase an 
additional share. A whole 
warrant entitles the holder to 
buy one share at a price of 
C$16 (712p) between August 20 
this year and August 20 1985. 

The pricing was decided on the 
basis of Monday’s closing level 
in Toronto of C$123, plus a 
premium of 87.5 cents for the 
warrants, to give a total price 
for one unit of C$13.75. 

Wood Gundy. Dominion 
Securities, Amos and Richardson 


Securities of Canada acted as 
underwriters for the Canadian 
and European offering. 

The U.S. offer, through Morgan 
Stanley, was priced at U.S.glLlS 
per unit. 

Offers of this nature are 
normally made at a slight 
discount to current market 
prices, unlike the greater 
discounts which generally prevail 
in the case of rights issues. This 
is because of the attraction of 
the warrants to pnrehase further 
shares at a given price over a 
fixed period in the future. 

Inco dearly felt that the 
interest in the warrants would 
be sufficient to induce investors 
to pay the small premium, and 
the market’s initial reaction sug- 
gests that the company was right 

The proceeds will be used to 
reduce bank and short-tens 
borrowings, with the aim of help- 
ing towards restoring Inca's 
financial strength. 

This strength has been sorely 
tried of late, notably by the 1981 
loss of U.S.$469.5m after substan- 
tial write-offs. Losses couffiaued 
into the first quarter of this year, 
at a level of U.S.$377m- 

There is, however, a growing 
feeling that Inco has got most of 
the really bad news out of the 
way. and is now simply waiting 
for a rise in the nickel price to 
put the -company firmly back on 
to an upward path. 

The shares were C$13}' in 
Toronto yesterday, and 575p in 
London. 


1 - 


i 


International round-up 


CANADA’S Pacific Copper Mines 
has paid C$lm (£445,000) for a 
51 per cent interest in Territory 
Mining, which produces tin from 
alluvial deposits in Queensland. 

The Canadian company said 
that substantial cash flow from 
the purchase would start 
immediately, and is expected to 
continue for the next 12 to 15 
years. 

The deposit is in two main 
areas, Tate River and Kangaroo 
Creek, and contains an estimated 
15m tonnes. 


Bidding companies including 
Amax and Shell offered a total 
of almost S55m (£30m) for 
mining rights to 21,000 acres of 
govern meat land estimated to 
contain about lJ5bn tons of coal. 
Agencies report that the coal 
auction was the biggest in U.S. 
history. 

Mr James Watt, the U.S. Sec- 
retary of the Interior, said the 
new leases would nearly double 
coal production from the Powder 
River Basin of northern 
Wyoming and south-eastern Mon- 
tana by 1990. 


EUROPEAN OPTIONS EXCHANGE 



1 

May 

I 

Aug. . 

i La,t 

1 Nov. 

i 

t 

Series 

Vol. 

j Last 

j -vol. 

•1 

| v °*: 

t taat 

• Stock 

■I'vfi 5 cri 

GOLD C 

fsool 






1 “ 

15 

69 

15331.80 

- i ; . - 

GOLD G 

9350 

IS 

1.30 

1 

17.50 


_ 

. 1 : . . . \ . . 

GOLD C 

S37» 

— 

_ 

12 

10 

BO 

20 

If 


GOLD C 

$400 

mm 

— 



10 

_ 13 

BM 


GOLD C 

8426 

— 

_ 

IB 

3 




- 

GOLD P 

8300* 

■ 

_■ 

4 

6 

• 


M 

> . ’ 

GOLD P 

8326 

10 

3 

3 

12.50 

14 

18 

fi 

I 

GOLD P 

6550 

6 

18.60 

33 

24 



fP 


GOLD P 

8376 

— 

— 

10 

41 B 

20 

46 

" 


GOLD P 

8425| 

— i 

— 

3 

91 B 

— 


ff 

M 


123, nl 81 87-91 






- 



C 

F.110I 



' ' 

2 

5.60 

j 



F.l 16.60 


c 

F.l 12.60 

60 

3.20 

21 

3.30 

331 

3.50 A 


c 

P.115 

40 

0.60 

37 

1.60 A 

\ . 8 

2.10 

' ii 

n • 


p 

F.lloj 

— 

— 

— 

• — 

! 100 

0.70 B 

L' 

13 NL 81 

86-88 









C 

F.10BI 

— ' ' / — 

1 BOO ; 

1 iso , 

r - i 

1 ~ 

IF.I06.ia 

■ 

10*4 NL 80 86-86 








z . 

C 

F.lOOj 

6 


1 80 i 

I 3.70A1 - 

1 

F.l 03. 20 


C 

F. 102.50, 

— 

j 3.10 


i — | 


2.7o 1 

■■ 

n 

I . 

P 

F.102.501 

— 


I io , 

1 1-30 i 

| 60 



11U NL 82 88-92 









C 

F.1Q2.60] 

F.105I 

— 

— 

100 

-3 A 

1 

1 3.40 A'F.105 1 


C 

200 

0.50 

— 


12 

1 2.20 



C 

F.207.50j 
F. 102.50 



1 


2 

f 1 

l ^ 


P 

— j 

— 

_ 

— j 

26 

1 1.10 


v ■ 

P 

F.10B 


— ; 

— 1 


620 > 

1 1.90 

' M 


10 NL 82 86-89 









C 

P 

F.102.501 . 
F.IOO) 

— j 

| — j 

1 110 1 
1 70 .! 

1 0.70 | 

1 1.70 1 

1 10 

| 1.10 

[F.IOO 

L M 




July 

Oct. 


Jan. 



ABN C 

F.300! 

6 

4 

1 — | 



— 


F.290 


AKZO C 

p.saj 

129 

4J30 

_ | 





F-29.60 


AKZO C 

F. 27.50 

a 

2.30 

■ 

_ 





AKZO C 

F.SO, 

13 

O.SO 

1 127 ; 

1.70 



” 


AKZO P 

F.27.6D 

4 

0.90 | 


__ 1 




11 


AKZO P 

F.30: 



i 

15 j 

2J50 j 

. , 

' 

” 


AMRO C 

F.65; 

30 

i : 





• 

F.54!l0 

-* 

HEIN C 

F.50; 

4 ; 

14,20 1 

__ ■ 

- 1 



— 1 

FJ53.70 


HEIN C 

F.65, 

20 ; 

8,70 b 

9 . 

9.40 





*-'■ ... _ 

HEIN C 

F.6Q 

19 ! 

6.50 



_ 1 




HEIN P 

F.60 

7 

, 1.40 

! ao ! 

2.50 1 

5 

3 



H0OG C 

F.l 7.50 

15 

0.50 

9 i 

I 



f.ib” 


HQOG C 

FJ20, 

- 

— 

i 

mm 

60 

| 0.70 


HOOG P 

F. 17.60. 

. 6 I 

1.80 

— j 

— 



" 


KLM C 

F.IOO 1 

27 1 

9.50 



___ 



F. 104.20 


KLM C 

F.l lo! 

30 [ 

5.10 

49 

8.80 





KLM C 

F.lSOf 
F.IOOI 
p i in> 

— i 


3 

4.80 

__ 

f — 



KLM P 
KLM P 

3 ! 
1 ■ 1 

4 

a en 

— 




if 


NEDL C 

ri X 1 U 

F.130 

iM I 

15 [ 

0 <fiU 

3.GO 

22 

4.50 



F.l 30. BO 


NEDL C 

F.I40 

— : 

— 

10 

2.40 


- 

NEDL P 

f.iio! 

40 1 

1 



_ 



f • 


NEDL P 

F.X20I 

40 1 

4.80 

16 ! 

6.20 





M 


NEDL P 

F.130 

18 

11B 

9 i 

12.20 

__ 

_ 

■» 1 ' j 31 . % 

NATN C 

F.lloj 

| 


IB 

9.60 

• 

_ - 

F.l 19 .BO 

*** 

NATN C 

F.l 13 

23 j 

5.50 

7 

5J50 


- 


NATN C 

F.120 1 

10 

1.30 



, 


■1 1 

i . . 

NATN P 

f.iso: 

10 

4.40 





, 


H 


PHIL C 

f^o: 

13 

6A 

21 

6 



, 

Fa25 f 


PHIL C 

F. 22.50; 

616 , 

2.70 | 

J 


— i 

- 

I* 



TOTAL VOLUME IN 
A = Asked 


CONTRACTS: 

B=Bid 


539 

C=Call 


P=Put 


BASE LENDING RATES 


A.B.N. Bank 13 

Allied Irish Bank 13 

American Express Bk. 13 % 

Amro Bank 13 & 

Henry Ansbacher 13 % 

Arbuthnot Latham 13 % 

Associates Cap. Corp. 13 % 

Banco de Bilbao 13 % 

BCCI 13 % 

Bank HapoaJim BSf ... 13 % 
Bank Lcumi (Ui\) pic 13 % 

Bank of Cyprus l»-<% 

Bank Street Sec. Ltd. 14 % 

Bank of X.S W 13 % 

Banque Beige Ltd. ... 13 % 
Banque du Rhone etde 

la Tamise S-A. : 33Jft 

Barclays Rank 13 ^ 

Beneficial Trust Ltd. ... 14 % 
Breraar Holdings Ltd. 14 % 
Brit. Bank of Slid. East 12' % 

I Brown Shipley 13 % 

Canada Perm’t Trust... 13*% 
Castle Court Trusr Ltd. 23»«5 
Cavendish G’ty T*st Ltd. 14" *5 

Cayzer Ltd 13 % 

Cedar Holdings 13 % 

I charterhouse Japhet .. 13 % 

Lboulartons 13*% 

Citibank Sivines ....*123% 

Clydesdale Rank 33 or 

C. E. .Coates 14 % 

Comm Bk of Near East 13 % 
Consolidated Credits... 13 % 
Co-operative Bank ...... *13 

Corinthian Secs - 13 % 

The Cyprus Popular Bk. 13 % 

Duncan Lawrie 13 % 

Eagil Trust 13 '% 

E,T, Trust 13 « 

EJxeter Trust Ltd. 7 14 % 

Fir* -Nat. Fin. Corp 154% 

First Nat. Secs. Ltd.... 15}% ; 


Robert Fraser 14 % 

Grindiays Bank $13 % 

■ Guinness Mahon 13 % 

■ Ham bros. Bank 13 % 

Heritable & Gen. Trust 13 % 

■ Hill Samuel $13 % 

C. Hoare & Co fl3 % 

Hongkong & Shanghai 13 % 
Kingsnorth Trust Ltd. 14 % 
Knowsley & Co. Ltd. ... 131% 

Lloyds Bank 13 % 

Mallinhall Limited ... 13 % 
Edward Mattson & Co. 14 % 
Midland Bank 13 % 

I Samuel Montagu ...... 13 % 

I Morgan Grenfell IS % 

National Westminster 13 % 
Norwich General Trust 13 % 
P. S. Refson & Co. ...... 13 % 

Roxburghe Guarantee 13}% 

E. S. Schwab 13 % 

Slavenburg’s Bank ... 13 % 
Standard Chartered ...1113 % 
Trade Dev. Bank 13 % 
Trustee Savings Bank 13 % 

TCB Ltd. 13 % 

United Bank of Kuwait 13 % 
Whi teaway Laid! aw ... 13»% 

Williams & Glyn’s 13 % 

Win trust Secs. Ltd: ... 13 % 

Yorkshire Bank 13 % 

[ Membeis at die Accepting Houses 
Committee. 

7-dav deposits 10%’, ■ 1 -month 
10 35%. Shon leim £8.000/12 
month 12.B%. 

7-day deposits on sums of; under 

El 0.000 10V4, f 10.000 up to 

KeLOOO 11%, £50.000- and war 

itVA. - 

Call deposits fl.DOO, and over 

10"*« _ f * * .r.* ■ 

21-day da pa* its over CT.OW 'fWIt' 

Demand deposit* 

Mortgafla • bias' raw. '■ • 


■ 





\ I'd J!i 

- : V vafJMPr!- 






'ywtr : 

• ' • ’ -iSn 

' r '" : ‘ t- 

. 3: ;,-.i 


C: 


-i-wS- 


:xcham 


ATS* 


• a 1 . 


- : ... •■sj . 


- i 

51'.: 


Sugar decline accelerates I B,eak 


MALAYSIA 


sssar prices day's close. 


representative, the government 


: . tri ftk, 

’ * PndjSt 


■-■w/W 

•; 0: .nJS»s.: 
V’ ! %';* 


■?. :/ 8 r* 

‘ : 5-§ 

■A 

v. -JW 

r. c <y* 

... -• 

crV‘-' ,, »*W 
■ •**£**&■ 

: ■ 

'- r 

. . ■ 'll'-. 

1 a ir.7 f^.'' 

: -.'•■j Si- A J - 

«®fc r 


gram prices j 

torecast I WORLD raw sugar pnres day's close. representative, the government 

i resumed their move downwards Also yesterday the EEC Com- has 10 days to reply. The 
WORLD GRAIN prices are un- • yesterday with the London mission authorised the sale of sugar refiners have asked for a 

likely to rise signtflear.Uy in the : iaily pnee i*J)P) set at £113 44,000 tonnes of white sugar at preliminary injunction to halt 

coming year, according to a I per tonne, its lowest level since its regular weekly tender, litis imposition of a quota system 

U.S. Department of Agriculture : September 1579. This was £5 had no impact on the market as and a hearing on May 25. 


report. 


i dawn on tie previous day’s the amount involved was in line 


The forecast was “ highly ; level. with expectations. The maxi* t J?!!LJES££ 

tentative" it said and could he Traders attribute the fall to mum subsidy rales were set at V 1 ? JSSTZiVS!!. ««*!?* -iuSI! 
affected by U.S. and global har* ; the announcement in the U S. or dose to lost weeks level as 


vest developments and eco- « on Tuesday evening that sugar white 


larly if Soviet production re- : quota system. 


ML UIMt tU «CCIO 1LVH L_iL ..J 

whit a su'ur nrk'os havi? ^ import Quotcib und IKS 

remained generally unchanged. Admim^tratio^^tW d «%- 
The International Sugar Or- <. s ^’ ^ 

ganisatlon held a special com- ,+***££ 
mitiee meeting today ti> discuss °J r SS° taS 

fixing basic export tonnages for JJJ* ■ * .. pncc support 

1983 and I9»i An agreement 


covers from last year's poor : While some dealer: con- to freeze the total at the 1982 . The refiners say that impost- 
. out-turn and acreage expands ■ Adored that the U.S, decision level of 19,44m tonnes seems tion of quotas was not taken to 
in main exporting countries.” ! would have only a small impacj likely said delegates. The com- implement international trade 


the report, issued in Washing- 
ton, said. 


the genera! mcw was shat there raittee's proposals are to go agreements or to protect the 
existed an underlying pessi- before a full meeting of the interests of domestic sugar pro- 


Early indications pointed to < mism as to the prospects for a ISO Council next week. 


dueers, but simply to save the 


record 19S2-SU world harvests : turn-round in she market given Nancy Dunne in Washington government an estimated $400m 
of wheat and coarse grains production projections for this writes: The U.S. Cane Sugar it would have to spend to buy 
while world rice . output was • and r.exi year. "A lemming- Refiners’ Association has filed imder ‘be terms of the 

“ expected to match, the record ’ like atmosphere w how one suit in the U.S. Court of Inter- pr,ce . support programme 


harvest of 1981*82." 


trader de:=cribed the selling, national Trade in a last-ditch pass ^ d year - 


The projected average price 1 with sellers deriding to cut attempt to prevent the Reagan Mr Nicholas Kominus, presi- 
of wheat at the farm gate for * :!so:r Ureses after having lost Administration from imposing dent of the association, said 


the marketing year beginning ; hope cf a price improvement, quotas on sugar imports. 


October raw sugar futures 


imposition 


import 


on Juno 1 was put at S3.BfM.oo i October raw sujrar futures In the suit filed against Mr quotas is simply transferring 
a bushel for 19X2-83, compared ’ ended the dav at £127.225 down John Block, Secretary of Agr-i- the burden or the Adminlstra- 
v.itii ss.70 for 1981-82. Maize i £3.123 on the previous days* culture. Mr Donald T. Regan, lion’s sugar programme from 
prices wore projected to ■ figure. Futures were generally Secretary of the Treasury, and ihc treasury to consumers, an 
average 82.5U-82.fMi » bushel, j down 13.30 to £2.50 wn Tucs- Mr William Brock. U.S. trade authority not granted by law. 

The department forecast the / . T g» j 

sjggMi U.S. vote on futures agency 

in the 19S2-S3 (Julv-Junc) year, | O •/ 

fn'lUSlS?! 3 rt ” C ° rd 4410 t0nDeS ' BY NANCY DUNNE IN WASHINGTON 

Reuter \ DU 1 i. ihn !i(r. «ka in Mmnlirfilinnc In i-hnirmnn Mr Philin .TrtVincnn 


U.S. vote on futures agency 


Milk output 
price rise 
warning 

By Our Commodities Staff 

THE MILK Marketing Baird has 


BY NANCY DUNNE IN WASHINGTON 

A BILL ia extend the life of the want to udd complications to chairman, Mr Philip Johnson, 
Commodity Futur es Trading busy political schedules. had a conflict of interest when 

Commission (CFTC) for two A hotisp vote has noi yet been he voted to approve a Chicago 


more years is scheduled to come scheduled because another com- 
iu a vote before the fall U.S. mittee, the House Energy and 


senale on Thursday. 


isy political schedules. had a conflict of interest when 

A house vote has noi yet been he voted to approve a Chicago 
hedulcd because another com- Board o f Tr ade proposal, 
ittee, the House Energy and The CFTC has approved a 
Commerce Committee, has proposal to allow the Board of 


The controversy surrounding requested permission to work Trade to offer a stock index con- 


imposition of a user fee for on the legislation. 


tract which ** mirrors ” the Dow 


futures traders, supported by Three important amendments .tones Index but does not use 
the Reagan Administration but are expected to be introduced ihc Dow Jones name. Dow Jones 


sent proposals for a 10.5 per ‘ ;iir e committee, the Commission transaction fee. 

.u.. .1 1 : 1 wikiM h.i.m two Years So Senators wil 


19S3 season * i year: to two. Under the Bill threatened to veto a CFTC bill sued) to halt trading of the 

Tile forecast is based on pro- ; written by the Senate agrieui- which does not include the contract, 
sent proposals for ;• 10 5 per ‘ committee, the Commission transaction fee. Spokesmen for Dow Jones say 

cent increase in the tarset price ! would have two years to Senators will also seek to that Mr Johnson, as a former 
for milk and a cut on’ Juno i j study Ihe user fee issue before expand the regulatory powers counsel to the Board of Trade, 
from 2.5 per cent to 2 per cent coming back for another re- of state securities offices and should have disqualified himself 
of target price in tite’eo-respon- | authorisation. may try to give some of the from voting on the proposal 

sibiiitv levy. It would have to { However, another bill now C FTC’s powers to Ihe Securities when it come up for Cnmmis- 
be revised if there were any I wending its way through the and Exchange Commission, sion consideration. Mr Johnson 
radical chance in the final EEC house calls for a four-year re- which they feel exercises has voted for approval of all 


from 2.5 per cent to 2 per cent j coming back 
of target price in the co-res pon- i authorisation, 
sibiiitv levy. It would have to J However, i 
be revised if there were anv j wending its 


radical change in the final EEC house calls for a four-year re- which They feel exei 

settlement, ihe MM3 said. authorisation period, and that greater regulatory control. 

“In 1981-82 prices were in- ' version is more likely to be the Meanwhile. In a flurry o 
creased by supplements of 0.25p i final one emerging from a suits surrounding stock i 

and 0.2 Id per litre during the I house-senate conference. With futures contracts. Dow . 


greater regulatory control. stock index contracts which 
Meanwhile, in a flurry of law came before the Commission, 
suits surrounding stock index and. indeed as “a free trade" 
futures contracts, Dow Jones advocate has never opposed any 


year, and r further supplement ! presidential elections two years and Company is now suing the contract which won approval 
is expected in the summer." ; away, legislators are unlikely to CFTC and is alleging that its from the CFTC staff. 


BRITISH COMMODITY MARKETS 

T> a Cl? TUnTT AFC 32.50. Atornc»n: Three months £332.00 

DnoL :ViI / 1 AU n* .53 31.C3. 33.50. 30 CO. 28 00. 27.50 


BASE-METAL PRICES lest 3 round on 
the London Meal Exchange, oaiciij to 
lack ol interest. Copper fell souy to 
dose at £E82.5. Lead drifted to E32C 
with heavy U.S. selling evident in Kortj 
trading, whiio Zinc was finally £414.5.' 
Aluminium dosed et £560.5 and Wefcel 
a: £2.93?.5. Tin moved narrowly in 
quiet and routine trading with forward 
standxd nunc rial finally quoted jt 
£7.215. 

or "p.ni. -^or 
COPPER j Official i - ^Unofficial; ~t 

1 c !~jT : f ” ' nr. 

CMh G /. dC |~8a9 .5 ~1 i 054.5-5 
3 mths BS5.S 7 -S : CB3-.5 -5. 

Settle m't ' 859.5 —I — j 

Cathodes | ■ ' > ■ 

Cash.. 1 e50-l —l ; 846^ -5J, 

3 months 1 B801 -.25 876-7 ,-4.75 

Settlom't; 851 ^-l : — 1 

U^S. Prod.1 — . "73-31 • ...... 

Amslgenutod MeUI Trodlr.3 roponed 
that in the mornmg casn Higher Gride 
traded ir E65S.CO, three mantis £333 50, 

83.00. es.90. 87.50. 87.00. Cs'.hodes. 
casn £3:0.00. truce months £3£0.00. 
Kerb Higher Grade. - Three msnflia 
rM7.00, 8S.50. Afternoon: Three monAs 
£38? CO. S3. 52. 34.03. 85.00. 84.50. 

24.00. 83.50. Kerb: H.ther tirade: Throe 

months ES33.OT. 8J.50 34 CO. 83.2a, 

83.00. 82.50, 82.03. 81 50. 31.00, 81. SO. 

82.0 0. S2.5Q. Turnover: 15.725 tonnas. 

a.m. df; _ 'p.rri. : f "or 
LEAD [ Official I — (Unofficial! — t 

j £ j~ E : c 

Cash 1 321.5-3 1+4.12 313-4 -4.12 

5 months 334.5-.75. + S • 527-5 i-4.12 

Settle m’t: 322 >4.25 - , 

U.S. Spot - , 1 - — ’2M 
’ Lead— Morning: Ca^.i E32.C0. ~-S3, 
23.03. S3.C3. Hi.eo. 24.50. J4.75. 34 50. 
Kerb: Three months £334.50, 3A.t». 


32.50. Atcrnoan: Three months £332.00. 
21.53. 21.03. 33.50, 30 CO. 28 00. 27.50. 
27.03. Kerb: Throe mond« C327.00, 
26.00, 26.50. 25.00. 23.50. 24.50. 24.00. 
2J.S0. Turnover: ■ 15,725tonncs. 

. ci mT.+ cr r^j»jn~;T6r 
TIN : Official - . Unofficial! -t 

High Grade £ ; £ fi I £ 

Cash 7080-90 + 2-5. 70BO-SO |+5 

3 months! 7230 5 72203D 1+7.5 

Settle m't 7050 *5 — 

Standard 

Cash. 7030-90 t2.5 7060 90 !*5 

3 months 7250 5 7220-30 >+7.5 

SettJem't 7090 +5 . - 1 — . 
Straits E. : 329.40 - , 

NewYork — ....... 

Tin — V.orr.>>q: Standard, own £7,099. 
tiirso months £7.220. 30, 25. 30. Kerb: 
Sund aid: Cash £7.030. three months 
r7.2T0. Aitomaan- Standard, cash 
C7.1C0. E7.C90. 39. three morHhs £7.230. 
Kerb: Sax-Hjoia; Tbrre months £7,225, 
20, 10. Turnover 440 tonnes. 

' aTml +oF o-m. 4*or 

ZINC ■ Official — Unofficial' — t 

£ C • £ 1 £ 

Cash.... 41B .5 -.620 449.6-10 -2& 
3 months 4 17.5- .75 -j2J5 415.545 -2.5 
yment...: 412.5 —11 — ■ 

PrimWts - 'A 5 

Zmc^— Mcw.ng: C*sh £412 25. throe 
ir.anihs £417.09. 17 50, 17.75. 17.50. 
Kerb: Three mseths £413.09. 17. EO. 
Alternoen: Three months £415 00. 16.59, 
tS.CO. 15.59. 15. CO. 15.CC. Korb: Three 
mantne £*15.50. 15.09. 14 CO. Turnover: 
6.653 Cannes. 

1 " " 

Alumlnm 1 a-m. !+ or! n-m. |+ or 

. Official ; — 1 Unofficial | — t 

£ ! £ j £ l £ 

Spot '• 536 .5 [-1.5 I 536-7 —3 

3 months 657.5 8 -1.76 55S..5 -3 

Aluminium— Mam>.-.3' Three months 


£557.00. 56.00. S6.50. S7.09. 57.50. 
57 M.- 57.59. 58.00. Kerb: Three months 
£557.50. Afternoon: Three month 9 
£557.09. 57.50, 58.00. Kerb: Three 
months £559.00. 59 30, 60.00. Turnover 
19,209 tonnes. 


Inrj near the close raised values. Act! 
reports. 

WHEAT | BARLEY 

jYasterd'ysi +or Yest'rd'y*; +or 


n.m. 

Official 

+ Ot 

| 3850 to 
2920-5 

1 

+ 40 
+30 


£2.910. 29. Kerb: Three months C2.92S. 
Afremoon: Three months £2.925. 30, 
25.. <0. 45. Kerb: Three months £2,935, 
29, 25. 35. Turnover: 054 tonnes. 

* Cents per pound, t MS per kilo, 
t On previous official dose. 

SILVER 

Srlver was fined 0.8p en ounce lower 
lor spot delrvury in the London buHion 
m^tlret yeatorday 31 3C3.5p. U.S. cent 
equivalents of the fixing levels wore: 
spot C&Dc, up 1.*c; throe-month 623.4c, 
up 1.4c: six-month 717. 2c. up 1.8c: and 
12.mcmh 767.4c. up 1.9c. Tho metal 
opened et 3C1-364P (CSS- 670c) and 
closed at 361 -364p («S-863c). 


SILVER ; Bullion + Ol 
per I fixing — 
troy o z. | price 


Spot !363,S0p .-ii.Dui ■« 

3 monthsj375.30p -0.80| 374.4p 1-2 
6 months.a86.95p ,-1.05 - 

18nwnths.47g.00p - _ . / 

LV£ — Tumovor BO (105) lots Of 
10.000 ors. Morning: Throe months 

375.0. 374.5. 76.0. 78.3. 76.2. 76.0. 

Kerb: Three months 375.5. Alternoon: 
Three months 375.0. 74.5. 74.6. 74.7. 

74.5. Knrb: Three months 374.5. 

COCOA 

Futures oooned higfior but cased In 
ihn conditions throuerhou* a feaeure- 
less d.iy- Actuals business was scares, 

reports Gtll end Ouflus. ' 

-1— . (Yeet'day si + or Busfness' 

COCOA Close I - Done 


LM.E. +or 
p-m. — 
Unofflc'l 

362.05pL2.16 


INDICES 

DOW JONES 

FINANCIAL TIMES 

Dow ; May : May iManth, Year 
Jones, 11 ■ 10 ago , ego 

May 12‘May 10 Month agp^fear ago 
242.5b 1242.55 ' 244.55 1 252.56 
(Base: July 1 1952*=10i>) 

Spot 125.35 125.32 .126.85: - 
Futr'a 029.16 128.66 131.95 - 

(Saso: December ;1 1374* ICO) 

MOODY’S 

REUTERS 

May 11 May lDMonth ago; Year ago 

May 12 May li ; M'nth ago Year ago 

1O08.B 1008.6 i 996.0 \ 1074.8 

(December 31 1S5I--100) 

1575J ; 1677.1 : 1508.8 ■ 1634.0 
(Baca: Scpiomber 13 1931 ~1Cp) 


Mnthj dose 1 — | close j — 

May. 120.60 j + OJsj 112.60 to^O 
July- 184.00 '+0.05 - • - 

Sept^j 109.50 1 + 0.40 105.10 ! +0.1S 

Nov- 113J6 +0.W, 109U0 1+aiS 

Jan., 117.40 +0.45 113.00 +0.10 

ftor J 120.8 9 ‘+0 J5{ 116.35 ' +0.» 

Bus/ ness done — Wheat: May 121706- 
120.75. July 124.35-123 90. Sept ICS. 40 
only. Nov 113.25-113.05, Jan 117.40- 
17.15. March 120.00 only. Sales: 167 
lota of 100 wntxjs. Barley: May 112.85- 
112.70, Sept 106.10-1C4.9Q. Nov ICS.IR. 
108.80. Jjn 113.10-113.00, March 116 .35- 
116.25. Solos: 85 lots ol ICO tonnes. 

LONDON GRAINS— U.S. Dark 
Northern Spring No. 1. 14 par cent. 
May 10/July ID 111.25. June 109.50. 
July 108.00 transhipment East Coast 
sailors. English Food fob May 123 00. 
June 134.00. Sept 112.75. Oct/Dec 
117.00 East Coast. Makes: French May 
137.50 quoted transhipment East 
Coset. S. African Whita/Yollow June/ 
July 86.00. Barley: English Feed fob 
May 117.75, Juris 119.00. Aug 107.25, 
Sspt 106.26. Rest unquoted. 

HGCA— Locational ex-farm spot 
prices. Other milling wheat: Eastern 
124.50. Feed barley: Eastom 113.50, 
E. Mids. 113.10, N. East 112.90. Scot- 
land 115.50. Tbs UK Monotary 
Coefficient for the weak beginning 
Monday. May 17, is expected to remain 
unchanged. 


prospects 
for copper 

PARIS — Prospects for the 
copper market this year are 
bleak and prices are likely to 
remain depressed due to the 
continuing economic reces- 
sion, Umarjadi AJotottljono, 
secretary-general of the Inter- 
governmental Connell of 
Copper Exporting Countries 
(Clpee). said, reports Renter. 

In the latest Clpee quarterly 
review, be says forecasts of 
western economic recovery 
bad been put back from mid- 
1981 to the latter half of 1982, 
and some observers now doubt 
whether the recovery will 
begin this year. 

Western refined copper con- 
sumption last year totalled 
only 7.2m tonnes, represent- 
ing a decline of 1.3 per cent 
from 1980 and of 4J per cent 
from 1979. Production in ebe 
west last year was put at 
7.09m tonnes against 7.04m in 
1980 and 7.01m in 1979. 

Consumption and prices 
continued to fall in the first 
quarter of this year. 

Mr Umarjadi said copper 
prices are currently lower 
than production costs for 
many mines. 

But he adds that an 
economic recoveiy towards 
the end of this year could 
cause a massive price 
increase. 

Our Commodities Staff 
writes: Copper prices were 
easier again on the London 
Metal Exchange yesterday 
reflecting continued lack of 
consumer demand and a 
firmer trend in Sterling- 
Other metals were also down. 
Aluminium fell to a new low 
of £536.5 a tonne, and silver 
prices also declined to the 
lowest level for over three 
years. 

Tin producers 
pact discussed 

KUALA UTMPUR -- Senior 
officials of the world’s three 
leading tin producers — 
Malaysia, Thailand and 
Indonesia — began two days of 
talks yesterday to consider a 
Malaysian proposal for the 
setting np of a producers’ 
pact. 

He officials are meeting In 
advance of a ministerial meet- 
ing later this week. 

Reuter 


535.0, 537.0, 535.0: July 5S2.5. S«.0. 
543.0-542.6: Oct 541.0. 543.0. 541.5- 

541.1. Salu: 133. 

SOYABEAN MEAL 

Tha market opened unchanged and 
moved lawor on trade selling encour- 
aged by stranger sterling, reports T. G. 
Roddick. Prices found commercial 
support at the lower levels. 


Bugs and barn owls— 
palm oil’s new workers 


BY WONG SULONG IN KUALA LUMPUR 


A TINY weevil, introduced 
from West Africa a year ago. 
is causing a sensation on 
Malaysia's oil palm estates. ‘ 

It is saving tens of millions 
of dollars, while helping oil 
palm growers to alleviate their 
most serious problems — labour 
shortage. 

It does so by pollinating the 
flowers of the palms. The pol- 
linating weevil (Elaeidobius 
Kamerunicus). measuring one 
eighth of an Inch long, wjs 
introduced by Unipalxnol, a 
subsidiary of Unilever. 

For a long time, it was 
thought that natural pollina- 
tion was done by the wind and 
in Malaysia, labourers are 
engaged to pollinate palms 
using long syringes. 

Assisted pollination costs 
between 30 and "0 Ringgit per 
acre per year, depending on 
the terrain and is a tedious job, 

Unipaimol had pollination 
problems on its estates in 
Sabah. Since the oil palm was 
a native of West Africa, a team 
was sent there to search for a 
solution, and discovered the 
weevil. 

According to reports from 
many estates, these insects are 
being put to work extensively. 


and they have proved to he 
doing a better job than man. 

So far, there , are no indica- 
tions of serious : side effects on 
either the ■ oil ‘ palm or other 
crops caused by the invasion 
of these -weevils. 

And the best part of it is 
these insects can pollinate 
palms at any height, whereas 
in assisted pollination, it is not 
possible to reach the high 
trees. 

This innovation highlights an 
important point about Malay- 
sia’s oil palm industry. In spite 
of being the leader in the field, 
accounting for 56 per cent 
(2.Sm tonnes > of the world’s 
exports of palm oil in 1981. the 
Malaysian industry is in many 
ways primitive and wasteful. 

Like rubber before it, oil 
palm was cultivated exten- 
sively on back-breaking, cheap 
and freely available labour. 
Now labour is getting increas- 
ingly expensive and scarce and 
Malaysian plantations find 
great difficulties in retaining or 
attracting workers. 

The short-term solution is to 
recruit foreign labour and it is 
estimated there are as many as 
200.000 Indonesians (many of 
them illegal immigrants) work- 


ing on Malaysian estates* 

But the massive and con- 
trolled influx of Indonesians in 
the past decade is already creat- 
ing social and political problems 
and the government is drawing 
np a plan for an orderly re- 
cruitment of foreign “guest 
workers." 

The Indonesians are expedled 
to remain a feature on Malay- 
sian plantations for years to 
come, but to rely on such wor- 
kers would, among other con- 
sequences, perpetuate work 
patterns that are wasteful and 
inflexible. 

New ways still have to be 
found to tackle the labour short- 
age that will grow even more 
serious when large acreages, 
planted during the 1960’s, are 
due for replanting by the mid- 
1980’s. 

Some of the innovations in the 
oil palm industry are as simple 
as they are ingenious, and they 
show bow nature could be used 
to good effect 

Rats used to be a big prob- 
lem on the estates as they 
gobble up the succulent fruits. 
Snakes and poisons were used, 
but it was not until the bam owl 
was introduced that the rat 
problem was checked. 


Hopes of glasshouse peace 


BY RICHARD MOONEY 

THE EEC row over subsidised 
gas prices for horticultural pro- 
ducers seems likely to end as 
soon as the Council of Agricul- 
tural Ministers can find time to 
discuss a compromise plan 
agreed between the .Dutch 
government and the EEC 
Commission. 

Under the plan, preferential 
gas prices for glasshouse 
growers would be phased out by 
April 1 next year. 12 ' months 
sooner than under earlier Dutch 
proposals. The deal is still 
awaiting final approval from 
Common Market Agriculture 
Ministers but hopes tbat it will 
prove acceptable were given a 
boost yesterday when Britain’s 


PRICE CHANGES 

-hi tormea -unlees otherwise stated. 

I May 12- +or I Month 
1982 — I ago 


jYextardy»j+ orj BwUness 


June. 1 I3MM1 *— OJtC 

August, 1S2.40-327-O.46 1K.20-SZ.-50 

October..... 112,50327-0.65 183.204230 

Deo 1S6.O0-M.4-O.SO 1367046.00 

Feb 1 59,00-4 (L5 — 0.75 189.80 

Ap ril- 142.20-42 7+070 - 

Seles: 450 (724) lota of 100 tonnes. 

SOYABEAN OIL — Tho market opened 
higher on a weaker dollar and better 
Dutch cash markets but foiled to hold 
mast ol grains. Closing prices and 
business done (U.S. S per xonna): 
June 509.50-6.50. untradad; Aug 
509.00-8.50. 508.50: Oct 511.00-10.50. 
510.50: Doc 515.00-13.50. 516.00-V3.00: 
Feb 517.00-15.50. 517.00-16.50; April 
521.50-18.00 untradad; Juno 530.00- 
20.00. untiodod. Turnover: 100 (115) 
lots of 25 tonnes. 


Metals 

Aluminium .... 

Free mkl 

Copper 

Cash h grade.. 

3 mths...,. 

Cash Cathode.. 

3 mthfc 

Qofd tray ax ...; 
Lea d Cash—. .... 

3 mths.. 

Nickel 

Free mht 


..'£8 10/8 IS £810/815 

.*97611005 _;310O5(0SS 

£054.76 —4.6 l£875 
. £883.25 —5 £903.75 

.£847 —5.5 1£870 

.'£876.5 —4.75 £897.75 

. 3332 -026 3365 - 

,:£313.5 -4.125X32S.125 

.'£327X5 -4.123 £342.125 

.£3974 '£3926 

. 235>26Sr -5 245:275c 


National Farmers’ Union gave it 
a qualified “ thumbs up.” 

The UK Government, 
prompted by the NFU, has been 
the main objector to the Dutch 
gas price structure under which 
glasshouse growers pay less than 
other gas users. The union htp 
claimed this gives the Dutch pro- 
ducers an unfair competitive 
advantage on the British 
market- 

Speaking in London yesterday 
Sir Richard Butler. President of 
the NFU. said the union’s lobby- 
ing has “finally paid off.” He 
insisted, however, that British 
growers should continue to 
receive a compensating subsidy 
equal to the residual advantage 
enjoyed by the Dutch during the 

GOLD MARKETS 

Gold was barely changed in 
the London bullion market 
yesterday, . closing 7 . just " St an 
ounce-down from ToESday*^level 
at 3S31J-332*. It opened at $331*3- 
33328 and touched a low of S331i- 
3332} and a high of S333^334: 

In Frankfurt the 12* kilo bar 
was fixed at DM 24.475 per kilo 
(3342)9 per ounce) against 
DM 24.365 ($331.99) previously 
and closed at 3331-332 from 
3332-333. 

In Paris the’ 12} kilo bar was 
fixed at-FFr 64,300 -per kilo 
($336.06 per ounce) in the after 
noon^ compared with FFr 64,250 
($337.56) in the morning and 


three-stage elimination of eon - 1 
cessionary gas tariffs. ! 

Prom April 1. 1983. the Dutch \ 
government has undertaken to j 
keep horticultural gas prices in 
step with the price of heavy fuel t 
oil. ( 

The compromise plan was on ' 
the agenda for this week's 
Council of Ministers meeting, 
but with debate concentrating ■ 
on the farm price package, it 
was not reached. This could weH 1 
happen again at next Monday's 
meeting unless it is passed 
through “on the nod” before 
the meeting doses. Failing this 
it may have to wait until the 
next scheduled council meeting 
on June 14-15. 


FFr 64300 ($396.06) on Tuesday \ 
afternoon. 

In Luxembourg the dollar per ' 
ounce equivalent of the fixing ■ 
level was $33350. J 

In Zurich gold finished at $330- > 
$333 ftom $331-334. 

LONDON FUTURES 

Month BU t £T 1 

£ portray I 

ounce I 

August IB57Wj»-fl77« ri&&K60 • 

Sept’mb’r 187^0-770,-0760 107708 70 
October... 189J0-9.MhjJ.456 1I9704JD 
November 191.2fl-1.4C -0.280 — 

Turnover 925 (1,028)’ lots of 100 • 
troy oza. ; 


COTTON 


RUBBER 


Per 

Single 

column 

line 

cm 

£ 

£ 

S.00 

27.50 

6.00 

20.00 

8.50 

29.00 

8.50 

29.00 

S.50 

29.00 

6.00 

20.00 

6.00 

20.00 

G .00 

20.00 

S.00 

27.50 

— 

net 12.00 


CLASSIFIED ADVERTISEMENT RATES 


Commercial and Industrial Properly S.00 27.50 

Residential Property *>.on _o.oo 

Appointments . . M 

Business. Investment Opportunities -9-W 

Businesses l’or Sale/Wanted b.50 29.00 

Personal JfSJ 

Motor Cars £ rJ’JJJ 

Hotels and Travel 

Contracts and Tenders b>uu . 

Book Publishers t _ „ M — net 1 - 00 

Premium positions available 

(Minimum size 30 column ems) 

£ 6.00 per single column cm extra 
For further details write to: 

Classified Advertisement Manager 
Financial Times, Id Cannon Street, EC4P 4BY 

Futures trading: the ^ 
I 1 indis pensable aid 5 

mental arti tEdmk^anafyses.recommendaians,an^^^|^« l 

rffcindisiaensabfeinlbnTBtioo? \\ 

CCS.T. Commodities Ltd- \ 

Vfatsftgham Ifouse. 35 Seethmgl^e, London EG3N 4AH. \ 

01-480 6841.Tdex; 888571. 


Mar.. 941-43 —7.5 966-43 

July 97172 — 9.0 B88-71 

Sept. 997 98 j— 6.0 1013-997 

Dee... 1034-35 -4.0 1047-33 

Merab 1065-66 -7.0 1076-06 

May 1083-87 - 10 . 6 j - 

July...- 1 100-07 - -11.5 — _ _ 

Safes: 2.004 (2.972) lirs of 10 tonnes. 

ICCO— Daily pmsea far May 17: 80.38 
(80.61). Indicator price (or May 13: 

eo.ea t ao. 68 i. 

COFFEE 

Steadier alerting prompted a afigfrdy 
wanker opening m ihm volume, reports 
Drexet Barn ham Lambert. Comtnissfan 
house oeHing I allowed a lower New 
York bolorc fresh dealer support 
emerged. 

jVoBimuv'a; 

COFFEE Cfcae 1+ or Builnun 

l — — Done 

l£ per tonne! 

May l.J - : iawo . *.o its mo 

July 1136 37 1—3.0 1137 20 

Sent- J 1103 04 + 2.0 1108-95 

NW_; ! 1008-90 +1.0 1092-81 

January i 1080 82 -1.& 1078 

March i 1070-73 -4.5 1073 70 

May.. ....... .J _lO90-75 — 7.6 I - _ 

Seles: 1,937 (2,673) tets of 5 tonnes. 

ICO Indicator prices lor May T1: 
(U.S. cenw per pound): Cemp. dally 
1979 121.85 (121.93); IS-day ovorago 
122 83 (122.70). 

GAS OIL FUTURES 

Pricfls quickly fell to ihe Iowa end 
than s toadied throughout 11,0 day on 
hrmor physical a end n stronger New 

York. ropon&_Promior ^lan. 

“'Mnnth Yeat’diy-ij + or Buhmi 

Montn oloM — Gone 

8 U.S. 

oer tonne 

May 299.00 i +3.Sfl2S9,Wl3S,7S 

June !.... 289^5 + 3.BMB8.5542.7& 

July 287.25 +3.OOi2B7.50ai.M 

August 288.00 

Sort. 289.00 + 1 . 75 ifl 5 JW-M^fl 

OctT 292.60 + 2 . 26 1232.DO-6S.DO 

Ncjv„ 295.00 + 2.50 29S.M 

Dec....> i 297.50 +1J» — 

Jan^„ J aOOjO + j.OOl ~ 

Tumovor: 11.B54) low ol 100 

tonnes. 

GRAINS 

The market opened mostly higher. 
Activity was mmnly In July wheat 
which found resiafcnce hom country 
: soiling at *5p up. Now eiOBfl were 
quint with some hodpe selling pra- 
vontlnp bsrloy from finding InO eamo 
strength as whaat until general buy- 


Tlio Lendan physfcsl martiec opened 
sKghfdv Mae Star, stiracred Irrt+o interest 
through die day and closed easier. 
Lswrs and Pent recorded a May lob 
price let No. 1 RSS in Kuala Lumpur 
of 204.73 (2C4.5) cents a leg and SMR 
20 180 X) (same). 

No. 1 YostVym ] Previous Business 

R.S.S. close | close Don* 

I l 1 

June..... 6JJO-M.OOI 63.7085 M M.S0 
July 64J044.7OI 64J0M.6C, 64.60 
Jly-Sept M.BM6JJ0 S4.S0-M.7D 66J0MJO 
Oat-Dec 6B.40-S6.60 GS.2046.SD B8JO-M.50 
Jan-Mer M.T0-SB50 57.00-67.90 68.60-57^0 
Apl-Jne 60.M-6O.eiF 69.7069. BO 68.90 
Jly-Sept Bl.6081^ 61JM1J0 61.90-61.60 
Oct-Deo 96^0-95^01 63 J083.7B 93,60 
Jto-Mchl 66.30-66.4Oi 66.60-66. 

Soles: 318 |S99) h)W of 15 tonnes, 
2 (68) Iota of 5 (annex. 

Physical closing prices (buyers) 
ware: Spot 63.50p (53.00p): June 

S2.25p f52.00p); Jiriy 53.00p (S2.75p). 

SUGAR 

LONDON DAILY PDICe— Raw sugar 
£113.00 (£118.00) a unna cim May-June 
shipment. White sugar daily price 
£147.00 (£148.00). 

Boports that the New York market 
had amended the rules of the No. 11 
connect to preclude delivery Into tho 
U.S. produced a sharply lower open- 
ing. There was then Hide change until 
some short-covoring at tho close liltod 
prices, reports C. Czarmkow. 


LIVERPOOL — -Spot and shipment safes 
in Liverpool amounted to 655 tennes. 
Intern atonal developments mads buyers 
antisrp ate the nr requirements, and eon- 
?■ datable activity took place in African, 
Middle En stent -and certain South Ameri- 
can styles. 


POTATOES 


No. 4 Yesterday 

Previous ! 

Buslneu 

Can- • eloH 

cloxe I 

done 

tract 1 

ii 


£ per tonno 



4ufl.... 12 1.90-22,00 [1SU0-3&301 1S6.B0-S4 JM 
Oct 127^0*27.28i 1i0.M-30.40J IM^fl-25. 10 


Oct 127^0.27.28] IM.80-M.Wj 140^0-5 

Jan 1130.60-31^0 133.75-34.8ffl - 

March 1134.1088.20141^8-41^0:14130-37^8 
May.....;i4 1 J2 W2JJ0] 144.40-44.80 14 ! .50-40 JS 
AOB^.- 1 '4630-47.00 1*8.60-49.50 — 

Oct^lllA^flUja 16U0fl4J 0| - 

^ SslC5! 1020 (1,489) lots of SO tonnas. 

Tate and Lyle delivery pnee. far 
granulated baeis white sugar wao 
£374.0 (eonto) a tonne fob for homo 
trade end 013.00 (€224.50) for export. 

International Sugar Agreement (U.S. 
cents per pound) fob and Mowed 
Caribbean porta. Prices for M»y lit 
Daily cnee 9.53 (8.49): 15-doy avaroQC 
8.08 (8.70). 

WOOL FUTURES 

LONDON NEW ZEALAND CROSS- 
BREDS — Close (in order: buyer, seller, 
business). Now Zealand cams per Lg. 
May 370 seller, ml: Aug 392. 398. 397; 
Oct 40*. 407. 406-405; DM OS. 412. 
411: Jjfl 410. 41G. 410: March 421. 423. 
421*420: May 425. 431. 430: Aug 435, 
443,440, 440; Oct <35. 442. 442. Safes: 
30. 

SYDNEY GREASY WOOL— Close (in 
order: Buyer, seller. businoct). 

Australian tonto per kg May 565-0. 
570.0. 570.0-668.0: July 554.0. E55.S. 
588.5-554 0; Oct 525.0. 527.0. 526.0- 
HS.O, Dec 627.0. 528A 523.(V5?7.0: 
March 532.0. S32.5. untradod; May 


LONDON POTATO FUTURES— Follow- 
through buying kept rtie market steady 
w.riiin a small range, reports Ccley and 
Harper. Closing pnoes: Nov 68 20. 
+ 0.60 (high 68.90. low 67.90); Feb 
73.40, +0.59 (high 73 80. low 73 00); 
April 31.20. +0.50 (hign 91.70. low 
S0.7D): May 102.60. +0.30 (h-gh 102 70. 
law 101 .901 • Turnover: 465 (570) lots 
of 40 tonnes. 

MEAT/VEGETABLES 

SMTHFIE L P- Pence. per pound. Beef: 
Scotch ttllod sides 82.3 to 87.2; Ulster 
hindquarters 1CD.0 to 1G4.0, lorequar- 
tors 53.0 to 614); Eire hindquarters 99.7 
to 1C2.3. forequariers 56.6 to 59.8. 
Veal: Dutch hinds end ones 120.0 to 

125.0, hinds and ends (high auelity. 
limned supply) 127.0. Lamb: Enclish 
small (new season) 93 6 to 1C6.7, 
medium (now season) 36 0 to 100 0, 
heavy (new season) 92.0 to 96.0. 
Imported: New Zealand PL S3 2 to 
64.7. PX 61.5 to 63.5. YL 00.0 to 61.5. 
Pork: EnqFish. under ICO to 33.0 to 

55.0, 100-130 lb 45.0 to 54.5. 120-180 lb 
*1.8 id 50.0. 

MEAT COMMISSION— Average Fit- 
stock prices at representative markets. 
GB — Cattle 103.52p per kfl lw ( + 1.03). 
UK— Sheep 204. 80p per kg est dew 
( — 16. 95). GB— Pigs 77.50p per kg lw 
(+£171 

C'JVLNT GARDEN — Pr-ces for lire 
bulfc cf produce in sterling per 
package axsapt where otherwise stated. 
Imported Produce: Oranges — Cypriot: 
15 kg V stood a Lias 3^0-550 Jaffa: 
20 kg Shawm n 50- 5.50,- 80--5.70, -7S 
5.50. 83 489. 1C5 4.80. 123 4.00.-144 
4.59. 168 4.50: Moroccan: 16 kg Vaten. 
eta Lotec 43/Ho 3.50-5.30. Topaz— 
Jaffa: 53/90 4.40.6.60. Letnone— Sponli: 
treys 51-g 40/50 1.40-1.80: Jaffa: 16 kg 
90.-’ 106 4.50-5.00: Outspan: ^ kg 80/ 
120 4 50^.00: 1‘jLan: T 00/1 29 3.50-4.00. 
Graptfruit — U.S,: 16/17 kg, Florida Ruby 
7.50-8.09; Cyprion stnaH carton* 17 kg 

2.00- 4 60; Jaffa: 20 kg 27 4.S. 32 4.45. 
3S 4.45. 40 4.55. 48 dJS. 5S 4.95. 64 
4.75. 75 4.00, 88 4 00. Orteniques— 
Jamaican: 45/126 3. CG-5.00. .Apples — 
French: Gotdon Oelicrous 9 kg 4.40-4.80, 
18 kq 8.50-9.50, Stark crimson 10.09- 
11.50: Agjtraban: Granny Srruih 11.50- 
12.rO: New Za+land: t8 kg Cox's Omega 
Pi ppms 13.00-15,00, Rfld OelXrOUB 

1 2.00- 12.50; Chilean: IB kg Granny 
Smith 10.50-11,50: S. African: Granny 
Smith 12.00-13.00. Gefdsn Delicious 
11.09-12 50, SsoffccrimMfl 11.00-12.50: 
U.5.; 18 kg Red Delicious 9.00-14.00: 
Tasmanian: Can's Onnqe Rippns 18 kg 

12.00- 14.09. Pears— S. Afr-can 15 kg 
Packhom'a Triumph 9.50-10.50. Baurra 
Bose 34 lb 7.598.50. Comisa 34 lb 9.50- 
11.00: Italian: per pound Passacrassena 
0.14-0.16. Puaefws— israeii: 18/27 3.40- 
3.80. Grape* — S. African: Bmlrnks 
5.40. Now Cress: 7.50; Chilean: 5 kg 
Thompson 7.50-8.90. Rad Emperor 5.00- 
5 JO, Ahncrio 7to-7.50. Strawberries — 
Spanish: S oz 0.390^5: liafien: 8 oz 
0,390.40; Btffgion 0.490A5. BMone— 
Senegal: Cnwerrais 7/12 700-8.00: 
Gbttean: IS kg Wbfta 5.09-6.50: Guete- 


Platln'mtr ozV£260 ...., IE360 

Freemkt. £168^0 -X. 4 £ 201.60 

QuleJcmllvsrt ..8360:376-5 6380390 

Sliver tray or... 363.50,. —0^ !430.80p 

3 mths. 375.300 -0.9 444.70p 

Tin Cash.- i£7085 •+ 6 £7130 

* mtns......-..'*7225 '-r7.5 <£7362.5 

'luna«tentt01b.31O6.98 ! 012 OJ 2 

Woirrm22.4l0be 0106(110 :. :st02ilO7- 

Zinc Cash £409.75 —2.5 £412.5 

3 mths £415.75 —2.5 £416.25 

Producers. ...16860; BOO 6860/900 

oils ; f 

Coconut (Phil) :048Ou [-10 18515 

Groundnut...—: t ... 8695 

Unseed Crude 1 : - > • C 

Palm Malayan ,B510v • ,8505 

Seeds l l 

Copra Ph lip ....8330 8340 

Soyabean (IASJ.8276 | + U0J271 J!0 

Graf ns *■ ' ' 

BarleyPut Sep£105.10 ,--0.15 £103. 85 

MaJZO £137.50 '• 7 

Wheat FutJuly, £124.00 +0.C5-£122.30 
No^HardWintf : J : 

Other i , 

commodities I 

Cocoa shlp’t* £992 '-9 ,£983 

Future Jufy£«?1.5 —9 ‘£972.5 
Coffee Ft' July £1136.5 i— 3 £1166 
Cotton A.lndex'77.1Sc j+O.l :71.15c 
Gas Oil June.... <9289.25 t3 8277.75 


Odd Bullion (fine ouncel 


Ciena — .V|8331l2-732to 

Opening, ; *331J 4 -332U 

Morning fixing 7*333.50 
Afternoon fuung4331.50 


Krugerrand. ;S34 Ha-343 to 

.1/2 Krugerrancf_|S175to-176t( 
1/4 Krugorraod. .. S89to -BOto 
f/lfl Krugerrand [836-37 

Mapleleaf. :S341to-343to 

New Sovereigns. :S80to-8 IJs 

King Sovereigns 1 695-96 
Victoria So 595 96. . 

French 20o l S£9-79 

60 pesos Mokico 640814-411 
100 Cor. Austrla.|8323to-326 
620 Eagle* _!S432-437 


I91B0U-1B03.) 033114-3381* 
(£180-180to) 6320-3291* 
(£180.837) 6330 

(£180.212) 8332.25 


(£1853 4 -1863* 6342-3423* 
(£95V9BS*) 8176-177 

(£4811-401*) 88934-003* 

(£ IB la-20) 6361s-37lg 

. t£1853*-lB63,)!s341i B -342to 
(£431* -441*) |680to-81 


(£181-181 to) 
(£170^-100.3) 
(£180,180) 
(S181JS60) 


(£51 ic-62) 
(£5112-62) 
f£371«-43) 
(£222-223 Ig) 


695-96 

1695-98 

1669-79 

54081* -411 


(£176-1771,) J322to-325 
(£235-237tol 8432-437 


f£188to-187) 

(£96-96to) 

(£49-49 1*) 

(£2O-20to) 

(£1864-1868*) 

(£44-441*) 

(£52-52 to) 

(£52-521*) 

|£37S«-43) 

(£2223,-224 1*) 

(£175-1771*) 

<£2383*-838te) 


Rubber lkilc;... S3.SD +0.5 [54.25p n Mr nuffi June 

Sugar (Raw). ..'£113u '-5 5 141 rTSi^L 73 - 05 ' Scvz 

Woott’ps 64s ki.|399p ki1o : . [SMpkilo 74.60.74to. Dec 77.15-77 to. J»n 77.95. 


AMERICAN MARKETS 

NEW YORK. May 12. Ports Bellies— May 00.50-90.25 (90.BS). 


NEW YORK. May 12. Ports Bellies— May 90.50to.25 [90. BS), 

Coppar—Msy 7f.4> (72.25). June My 83.SS-8S.40 (83.351. Aug 87to- 
71.95 (72.85), July 72.95 -73.K, Sept «7-35. F®6 74.75-74,85, March 75to. 


t Unquoted, v June. u May-June. 
tNr 76-lb flask. * Ghana cocoa, 
n Nominal. 5 Seller. 


March 79.55. Moy 81.10. Jmy 82.63, 


May 7520. July 75.40. Aug 73.50. 
t Soya beans — Msy 666V666 (063M. 


°ec 86.G9, Jan 87.35, Marsh July 6721,-672 (6711,), Aug 675V673’ 


njsfc. ^ urujDti cocoa. £ 8 . 03 . . 

' SeH "‘ ‘Gold— May 332.0 f333.7). June 334.7- 

. 335i (335.8). July 338 6. Aug 3J2.0- 
IVhrte 5.50-fito: 5pintsn: 349 5 ■ D « 35S8 - Feb 364.3. 

3. watermelons— Spanish; "J- 0 - June 21B.3. Aug 387.9. Oct 

0; U.S.: 10.00. Pineapples De = **■2' Feb 412.4. Soles: 

- each 0.40-1.20. ’ ■ . . 

dombion: 40-lb boxes ir 2*VL . '?.*»'»“)— Nov 78.9- 

Avocados— Israeli: 3.00. V°. Feb 83.5. March 91.0-91.5. 

an: 3.00-3.50. Mango©*— A P n ‘ ,0a -°- Sales: 25. 

1 o£t 5 .? >; , VwjBMjfcjB ffSilvsr— May 667.7 (£63.9). June 

: B. CO: Mj/;: 5.00; U.S..- 571.2 (672.7). Jufy 678.0-679.6. Sept 
B ’ k 9 ” A '‘ 695 5 - 719.5-720.5. Jan 729.3. March 

to-5to: Guemcer Fink 743.9. May 763.5. July 779.1. Sept 

ISM'S' ^ l Dcc J E ? 5 ' Jjn 828 - 8 - Mareh Bi5 A - 

b.W. DjtM. 3 jo-3. 50. Kandy and Harman buH.an soot: 665.00 
anary: 6-i.g Green 250- (£53.50). 

>-6.00; Dutch: &jjg Green Sugar— No. n : Juhjy 8.39-8.40 

». Yellov/ 11.00. Wlme (8 72). Sept 8.67-8.69 (8.93). Oci 8.33- 
**'■ Jj**" -8-30. Jan 3.20, March 9.8-9.89. May 

W - „ 't 5 ?' 10.10-10 1" July 10.25-10.40. Sep: 10.C5. 

- h jjk P r~ m 0ct lo -7O-».90. Sales: 4.561. 

TSTS: S? 2£ ™- 5S4 - c ?-5 35 ' ro . msmm- . 


m ale: 10 Lq Min 5.50-6.00; Sp3nisn: 
Galia 4.03-6.00. watermelons— Spanish; 
16 kg 6.00-7.00; U.S.: 1000. Pineapples 
— h/ory Coast: each 0.40-1.20. 

lin en— C olo m bian: 40-lb boxes 
9 to- 9.40. Avocados — Israeli: 3.06. 
3.40: S. African: 3. CO- 3. 50. Mangoes — 
Kenyan: 8/16 4.03-5.00: Venezuelan: 
.7.00: Mwrcan: 8.00: mj ft: 5.00; U.S..- 
6 50-7,50. Toewtoes— Dutch:' 6- kg "A*’ 
'5100, "C" 4.80-5.00: Guernsey- Pink 

5.00. Oni on s C hilean: 3/5 b.OO-SJO; 
Israeli: 6.63: Direei: 3to3.50. 
Capsicum*— Canary: 6-kg Green 2fi0- 

3.00. Red 4.00-6.00; Dutch; 5-kg Green 
8.40. Red 9.00. Yellov/ 11.00. White 
10.00; Spatvsh: Green 2.00-3.00. 
Cabbage* — Dereh; White 7.50, Red 

4.00. . Broad Beans — French: 5-kg 3.00- 
3.50. Sugar Peas— French: 5- kg 11.00. 
Carrots— U.S.:- 48 a -1»lb.- per pound 
e.22,- Ddtehr'22-lb 3 fD-4 60,- pre-packed 
5.60, Cypriot: 22-lb 3.60. 

* 

GRIMSBY FISH— Supply moderate, 
demand good. Pr-c«a ai ship's side 
(unprocessed) per sane: Shell cod 
(5.00-E5.ED: codi.ng D.50-E4.50: large 
haddock E4.5Q-W.95. ned.um *3to- 

E4.40, small £2to-£2 30: med-um plotCe 
£S.G0-S6to. bee: s.T.::i E4.50-G.H); 
skinned dosfish. largo. £7.00-E7.S0: 
medium. €4.00: Ipmcn rs'o. large. 


Sept 674-674to. Nov 678-677to. Jan (SSOto- 
134.7. 690. March 705. May 717. 

IJSoyebeen Meet— May 192.8-192.9 
iE&l. July J?- 7 ' 192 - 8 (132-7). Aug 
'°ll 103-2- Sept 1W-2J94.5. O « 1B4J5. D«c 

l " e *' -ton 200.0-199.8. March 303^-, 

304.0. May 206.6-207.0. 

Soyabean 03 — May 2Dto20J30 
91.5. (2D JO). July 20.78-20.78 (20.58), Aug 

21 .CO- 20 ,£8, Sept 21.20. Oct 21.35, Deo 
June 31.70. Jan 21.85-21 .00, March SO. on , 

Sept May 22.45-22.50. 

larch t Wheat— May 544-344** (346M. Johr 

Sep I 2^L_3S3i* (361*,). Sept 374V3743*. Dec 
45.a. 2961-336. March 412. Msy 419. 


(653.50). WINNIPEG, May 11 

Sugar- No. 11: Juhiy 8 39-8.40 ,JB5 l ?C£Sj r SW*- »» 

f8 72). Sept 8.67-8.69 (8.93). Oct 8.33- ^ 12B 5 °* Dec tOAD. 

8.30. Jan 3.20. March 9.8-9.89. May sMmSwm „ e 
10.10-10 I" July 10.25-10.40. Sept 10.C5. * r C * ft LS ro ' 

Oct 10.70-10.30. Soles: 4.561 ,^ST ,8nt c1f St - Lawrence 224.14 

Tm— 534, CD-535.H) {591.00-533.00). ' w . 1 ,.., , . 

- — - - *H- cents per pound en-warehouse 

: (yilCAlia.'Moy 12. _ur> W3 oihetwise stated. *S per troy 

Larrf— Chicago loaso 22.53 (23.03). !C0 2?.. °* r iroy ‘ ounce. 

Live Cenle— June 61.25-61,25 (61.45), b if'S 31 *® 1 ' c ® n » 

July 62.10-61,95 (62.30). 'Auq -BIto- bUt *& 11 S ** sh ? rt 


61.20. Oct 57.60-57.50. Dec Sf.BO-CTto. SS°s° el^'l «4^? n h *** *7^? 1on - 
^b^e.12, Aor. 5, .30. Juf» 52.10, July SIL^tt's” .ILfe J.‘ 

Live Hone— June 71.82-71.90 (71.85).- ... 

«“&.D 0 ?S5« < g: e ;ii,£“o 5 , 6 ?S Tuesday’s dosing prices 

itMaiae— May 270>.-27 !P« (272*,). July _ NEW YORK. May 11 


medium. £»0_50: roakfish £2.10- 279S-Z791i (2301. Sept 281 Dec 284to- 
£3.00: sarthe £2.20-£3.00.’ 2345*. Man;h 297/*, May 305. 

EUROPEAN MARKETS 

' ' ' ROTTERDAM. May 12. Soyameal— (U.S. S per twine): 44 
Wheat— (d.S. $ F«r tonne): U.S, per cent proioin May/Sept 236. Mey/ 
No. 2 Dark Hard Winter 13.5 per cent, Sopt shipmom Franco 236.50 traded- 
Spot 202. U.S. No. 2 Rod Winter afloat 240 to 239, -May 236 JuriB 23B - 

Util in IIC Mm *3 ' A— n.. rn.ee*. 04... ft— . riKn vee . * - J-% ^ ® 


May 158. U.S. No. 3 'Amber Durum May/Sapt 236.E0, June/Sent' 236 SO Sales: 1.^5. . 

May 180, June 181. Jufy 181, Aufi 193, Nov/March 246.50 sellers. Pellots Cotton— No. 2: July 69.32-69 an! 

Sept 183. Oct 188. US. No. 2 Narthorn Brasil a floor cl Ghent 243.50 Moy/ f69 - 13 )- 0c ( 71.80 (71.70). Dee 73,07- 
? P . nn ?J 4 “"*■ ,S7 - Juoe 183 - Sep* 244.50-245.50 traded; afloat 245 73 - 18 * M0rch 74.90. May 76.02-79,20.' 

131 - ■•« «?. 0fct W;- May/Sept 246. J une/Sapi J«ly 77.02-77.20. 0« 77.77-78.0 0. 5eles: 

Canadien Western Red Spring ar/ivad 246.50. Nov/M:rch 2fil selfors 2.800. 

195 afloat lK. May 197. PARIS, May 12. Orange Juice— May 118.75-118 90 

Maize— (U.S. S per tonne): U.S. Cocoa — (FFr per 100 kg), May 1020- 1 5.00) , July 122.30-122170 (118.75) 

3 Wtow afloat 136. May 134 25, 1025. July 1057-1072. Sept 1117-1120. ?«* 125.S0- 125.60, Nov 127. 10-1 27.3a 

June ’32.75. July/Seot 132. Oct/Dec Dec 1162-1168. March 1205-1210 May Jan 1 29.00-129to, March 130.40 Vtoy 

131, Jan/March 138.50 sellers. 1235-1245, July 1260-1270 Sales at 131.80-132.00, July 133^0-133.40* Sent 

Soyabeans — (U.S. S per tonne): U.S. call: 1. Bales at 134KM3S00 ; SliluJo *”'* 

2 JfaJtow GuJfptwrs cfloai 272.50. Sugai-~iFFr per tonne): July 1500- CHICAGO M*v li 

May 270.50. June Z71.2 d. July 272, 153), Aug 1506-1508, Oct 1491-1497 Chieeqp |mm BoW-. 4n‘e 

Oec. 15to152S. March ^%2.1), Sept^«^f3c.fil^ 


rtMaufr— May 270>.-27V« (272*,). July „ NEW YORK, Mey 11 

^r2791i (2301. Sept 281>*. Dec 284to- . Jt Coco *~ Ma > r 17 05 (1705). July 

a-*. Match 297**, Way. 305. 2 670 J,662J * SfiW 1707 - Dm 1756/ 

“■««•» ’804. May 1854, July 1887. 
FT6 ■ Sales: 1,500. 

1 ^ C offe e—" C ” Contract; May 139.00- 

Soyameal— (U.S. S par njqne): 44 July 124.10-124.70 

r cent prouin. May/Sept 236. Mey/ ^ ^8.26-118.60, Dec 

Ipt ship mom Franco 236.50 traded- l!®- 75, March ti2.50-113.00. May 
dot 240 to 239, May 236, June 23 b! ”0 00-113.00, July 110.00. Sept 110.00. 
ay/Sapt 238. W, June/Sept 236,50, Sales: 1.785. 

)v/ March 246,50 sail ere. Pellets & Ju »V 69.32-89^ 

sail afloat mi Ghent 243.50. May/ 0ct 7180 (”-70). Dee 73.07- 


195. aflaa; IK. May 197. 

Maize— (U.S. S par tonne): U.S. 
No. 3 Yellow afloat 136. May 134.25, 
June 132.75, Jgly/Sopt 132. Oct/Dec 
131, Jan/March 138.50 sellera. 

Soyabeans — (U.S. S per tonne}: U.S. 
No, 2 Yellow Gulfporrs afloat 272.50. 
May 270.50, June Z71.25, July 272, 
Aug 272.75. Sept 273, Oct 287,75, Nov 
287.75. Dec 272. Jan 277.25, Feb 280.50, 
March 264 sailers. 


rail: 1. ~ 134.60-135.00. Sales: ijot"" 

Sugar— (FFr per tonne): July 1500- CHICAGO M«v li 

m 53> ' -2.” 1491 - 1497 ' Chicago I mm 6old-jIine^33s!s. 

1s2D-1525, March 335JB (332.1), Sept 345.8 (3*2.6) D©r 

SE’MJffSP ■ , “ 1 ' Si M, ' th 




30 


Caropanies and Markets 


INTERNATIONAL COMPANIES and FINANCE 


Financial Times Thursday May 13 1982 


Corporate America takes a battering 


BATTERED by recession, high 
interest rates and appalling 
winter weather, corporate 
America has just reported a 
dismal set of financial results 
for the first quarter of 1982. 
Analysis estimate that after-tax 
profits have fallen sharply, by 
considerably more than the 7.9 
per cent drop registered in the 
final quarter of last year. Sales 
were, at best. fiat. 

Bankruptcies are running at 
their highest level since the 
depression and businessmen 
are looking anxiously, in some 
cases desperately, for a re- 
covery. But few expect profits 
to pick up in the current 
quarter. The one bright spot, 
however, is that the quality of 
the few' profits beans made has 
improved:. Companies are not 
just making inflation gains on 
their inventories. 

The biggest casualties con- 
tinue to be in the manufactur- 
ing sector where cars, lorries, 
heavy equipment and steel are 
bearing the brunt of the reces- 
sion. But some former stars, 
like the oil and high technology 
industries, came croppers as 
well. 

In Detroit, the “Big Three” 
aU lost money on their car 
making operations, though both 
General Motors and Chrysler 
managed to squeak into the 
black, thanks to some one-time 
gains. The impact fed through 
to suppliers like Bendix. Cum- 
mins Engine, Dana Corporation. 

TRW and the tyre makers, 
giving them a bad quarter too. 
International Harvester, now 
the most precarious of the U.S. 


industrial gaints, made a loss 
of nearly $3 00m and was 
forced to ask its banks to relax 
the terms on its $42bn of debts. 
All the major steel companies 
were down. 

The fall in world orders for 
aircraft has. left the aerospace 
industry in a similar predica- 
ment. Boeing’s profits were off 
by over a half, though both 
Lockheed and McDonnell Doug- 
las managed to come out ahead 
thanks largely to defence work. 
General Electric, the migtatiy 
electrical and industrial goods 
concern which usually manages 
to raise profits by double digits, 
was up by 5 per cent 

The slump in the electronic 
components market bit deeply 
into profits, forcing some high- 
flying concerns to report the 
first decline in earnings during 
their brief but dazzling lives. 
Established names like Texas 
Instruments and National Semi- 
conductor were also off. But 
some people claimed to detect 
the first signs of improvement 
in Silicon Valley. Profits Intel, 
a leading manufacturer of hligh 
quality components, rose by 155 
per cent. 

But if there .was an upturn 
in demand, ii did not appear to 
be coming from the targe com- 
puter manufacturers whose 
results were mixed. IBM was 
one of the better performers 
with an increase in profits of 
5 per cent. Storage Technology 
and Wang Labs were also up 
strongly, but many office equip- 
ment companies suffered. Xerox 
among them. 

The construction sector 


labours on under the weight of 
high interest rates. The forest 
products industry had a disas- 
trous quarter with profit 
declines of 50 per cent or more 
quite commonplace because of 
the slow pace of house building. 
For similar reasons the building 
materials and chemical indus- 
tries were down. 

With such weakness in the 
economy’s foundations, the 
suppliers of investment goods 
and capital equipment con- 


David LaseeUes looks 
at the dismal first 
quarter results and finds 
that businessmen feel 
any recovery is likely 
to be slow 


tinned to suffer. Caterpillar 
Tractor saw its profits slump by 
70 per cent and was forced to 
make further cuts. Cincinnati 
Milacron, the largest machine 
tool builder in the U.S. was also 
off, by 10 per cent 

The airlines have found this 
recession specially turbulent 
Although passenger traffic has 
picked up a bit. the industry is 
fighting a cut-throat price war 
which has bitten deeply into 
profits. All the major airlines 
made huge losses, three of them 
dipping into the red to the tune, 
of over $100m, and two, Pan. Am 


and Braniff looked distinctly 
shaky. Elsewhere in the trans- 
port sector, the railroads were 
weak because of the fall in 
traffic. 

The retailers' fortunes were 
mixed with sales of basic goods 
holding up better than the “ big 
ticket ” items. 

Some of the most startling 
falls in profits, however, oaxne 
from the oft industry which 
only a year ago was racking up 
the largest profits in U.S. 
corporate history. The weakness 
of the oil market plus the 
recession took a heavy toll, 
particularly on companies with 
large refining and marketing 
operations. 

Of the largest oil companies, 
only Standard of Indiana 
managed to report a healthy in- 
crease in. profits of 25 per cent. 
Other giants were down sharply 
— Exxon by 23 per cent, Mobil 
49 per cent and Texaco 44 per 
cent, partly because of what has 
come to be called the “Arainco 
disadvantage." The Aramco 
partnership used to obtain 
Saudi Arabian oil below market 
price, but the free price has now 
fallen below the Saudi price. 
Many oil service com- 
panies continued ' to enjoy 
rising profits, however, thanks 
to the boom in oil and gas 
exploration. 

The air of doom and gloom 
about the economy had a depres- 
sing effect on the stock market, 
driving it down to a two-year low 
in March. This bit into the stack- 
broking busines and hammered 
Wall Street's earnings. Merrill 


Lynch and Paine Webber’s pro- 
fits were down by a third, E. F. 
Hutton's by 86 per cent In the 
financial industry, the insurance 
companies continue to have a 
rough time because of the dip 
in the insurance cycle, which 
is turning out to be more like 
a canyon. Among the Large 
insurers. Aetna Life .and 
Casualty was up 5 per cent, but 
most of the others were down. 

The savings and loan -industry 
suffered so badly that several 
of Its members had to be rescued 
from collapse by bank regula- 
tors. All was not bleak in the 
financial world, however. Most 
major banks' managed to raise 
their profits, in some cases like 
Citicorp of New York, by sub- 
stantial amounts. The banks 
benefited from the surprising 
strength of loan demand during 
the recession. 

Another .bright spot was the 
broadcasting and news publish- 
ing business which was buoyed 
by strong advertising revenues. 

With the second quarter 
already half over, businessmen 
say that the plunge in profits 
appears to be levelling out, but 
they doubt if the recovery will 
be quick. 

The drastic destocking that 
took place in the winter appears 
to have run its course, and there 
are some signs of renewed 
demand in sectors like autos, 
electronics and consumer goods. 
But unless interest rates come 
down sharply, easing some -of 
the pressure of financing costs 
and coaxing the economy to life 
again, the rebound is likely to 
be slow. 


Nalco Chemical expects 

year 


BY JOHN WICKS IN ZURICH 

SALES AND earnings of Nalco 
Chemical Company. should show 
further growth this year, accord- 
ing to Mr Robert T. Powers, 
chairman. In Zurich yesterday, 
Mr Powers said Nalco was well 
prepared to respond to a reviving 
economy and he was confident 
as to its future. 

This statement follows the 
announcement of what he called 
disappointing first quartei, 
in which group turnover was 
only 1.2 per cent higher than 
corresponding 1981 levels and 
net earnings fell 19.6 per cent 
to 39 cents a share. However, 
business is said by Mr Powers 
to have shown an improvement 
in March and ApriL 

Nalco Chemical, based in Oak 
Brook, Illinois, had in calendai 
1981 overall turnover of 
S66B.6m, sales having risen 
steadily since the company was 
formed in 1928. Net earnings 
reached SSI. 2m— 12 per cent up 
on the previous year. 

The group, which makes a 
large range of water-treatment 
and other industrial and special 
chemicals, is in the process of 


expanding its product range. 
Capita] investments, to exceed 
$50m in 1982, include expendi- 
ture on new plants in Italy, 
Spain, Venezuela and Colombia. 

Nalco is planning to leave the 
rati-knork compounds sector as 
soon as this stops producing 
profits. Last year, sales of 
anti-knock compounds had 
amounted to only 536.9m, which 
compared with 5104m as 
recently as 1979. 

Non-U.S. activity is expected 
to pick up again this year. In 
1981, foreign turnover had 
dropped by 7 per cent to 
$137. 8m due to recessionary 
trends in Europe and un- 
favourable exchange rates. 

• Celanese Canada, the sub- 
sidiary of Celanese, the U.S. 
fibres and chemicals group, will 
omit the quarterly dividend for 
the second quarter of this year, 
Mr Richard BL Clarke, presi- 
dent told the annual meeting in 
Montreal. A payment of 10 cents 
a share was made for the first 
quarter. 


Schmidt again 
raises offer 
for Pabst 

By Our Financial Staff 

SCHMIDT, the privately-owned 
Philadelphia-based brewer, has 
again raised its offer for Pabst 
Brewing, number three in the 
U.S. industry. Pabst said it 
would consider the offer. 

Revised terms are $20.5 cash, 
plus $5 of subordinated deben- 
tures. for each Pabst share. In 
March, Schmidt offered $20.5 
in cash, valuing Pabst at $16&n. 
In February, Pabst rejected as 
financially inadequate a $16 a 
share offer. 

Last month Pabst recorded, 
first quarter net earnings of 
$1.65m or 19 cents a share. 

Gore faces delay 

Gulf Resources and Chemical's 
annual meeting has been 
adjourned until May 21 after 
Mr Alan Clare of the UK, son 
of the late Sir Charles Clore, 
presented his list of 12 dissident 
directors, writes our Financial 
Staff. Mr Clore, who owns 15.4 
per cent of the Houston-based 
group’s shares, said that his 
nominees, if elected, would 
recommend redeployment of 
some or all of the Gulf's assets. 


Domtar trims spending as 
recession hits earnings 


BY ROBERT GIBBENS IN MONTREAL 


DOMTAR. A major pulp and 
paper, building materials and 
chemicals group, was hit by the 
recession in the first quarter.. 
Earnings were G$11.6m 
tU.S.$9.4Sml or 64 cents a share 
against C$15.6m or 89 cents a 
share a year earlier, on sales of 
CS437m against C$405m. 

Losses were shown in the 
construction materials and 
lumber sectors, and packaging 
results were weak. Pulp and 
paper profits were lower, but 


chemicals improved. 

Domtar does not expect to 
match its 1981 earnings. Capital 
spending is being trimmed in 
. both Canada and the U.S. The 
company is looking for opportu- 
nities to reduce commitments 
in businesses which are showing 
sufficient return and to expand 
into areas where growth oppor- 
tunities are better. 

The company is 44 per cent 
controlled through two agencies 
of the Quebec Government. 


George Weston decline 


Record year 
expected 
at Sea 
Containers 

By Andrew Rsher, 

Shipping Correspondent 

SEA CONTAINERS, the 
major container and ship 
leasing group, boosted net In- 
come from 574m to $12.8m 
in the first quarter of 1982 
and expects a record year. 

The group, consisting of 
“paired” companies based in 
Bermuda and New York, 
lifted revenues from $46.9m 
to $52. 7m. 

Us shipping assets include 
205,000 containers and 31 con- 
tainer vessels. The group 
also has growing leisure in- 
terests such as the luxury 
Venice Simplon - Orient 
Express, which will link 
London with the Adriatic 
city later this month. 

Last year, the group raised 
earnings by 7.4 per cent to 
$43. 3m with total revenues up 
from $201. 6m to $207-3m- Hr 
Janies Sherwood, president of 
the companies which are 
quoted on the . New York and 
London stock markets, said 
the group was “on target” for 
another record earnings year. 

Two small SeaCo container 
ships had been caught up in 
the Falkland crisis; but it was 
believed the Argentine char- 
terers would meet their 
obligations, he said. Charter 
terms were- under negotia- 
tion for one of the group's 
British flag ships for use with 
the South Atlantic task force. 

Later this year, the group 
plans to float shares of Sea 
Containers Pacific in Bong 
Kong. This operating com- 
pany, based in the British 
eolony. Is now a subsidiary of 
New York-based SeaCo Inc, 
which would still have half 
the shares after flotation. 
SeaCo and Sea Containers are 
the “paired” companies. 

• Earnings at Overseas Ship- 
holding Group (OSG) slipped 
from $2GL5m or $1.03 a share 
to $2L7m or 84 cents in the 
opening quarter of this year 
— but the 1981 total includes 
a gain of 13 cents from 
a ship sale. 


Finn fourth quarter 
for General Foods 


BY OUR FINANCIAL STAFF 

GENERAL FOODS, the U.S. 
leader in- packaged foods, 
showed -a strong gain in the 
final quarter of fiscal 1981-82. 
with operating net profits of 
599.65m or $2.02 a share against 
$72 .49m or $1.47 a share. 

Sales moved ahead sharply 
from $1.73bn to $2.13bn. The 
results brought profits for the 
year to $259.3 Lm or $5.25 a 
share, just ahead of tile previous 
year’s figures <rf $255.37m or 
$5.14 a share.. 

The resalts for both the final 
quarter and the year exclude 
a charge of $1.20 a share from 
several discontinued low return 
areas. 

These include the sale of 
Burger Chef to Hardee Pood 
Systems in December last year 
for $34. 5m, and the disposal of 
other restaurant operations and 
international businesses. 

The company also reported 
a substantial rise in interest 
charges last year to $65. 7m from 
$S0.Sm. 


General Poods extended - fte 
scope a year ago with the pur- 
chase of Oscar Mayor, a major 
producer of branded meat 
products. 

The board of the White 
Plains-based company said that 
earnings from Oscar Mayer 
modestly exceeded the costs of 
financing the acquisition. 

Mayer has been a major con- 
tributor to group sales which 
were nearly 28 per cent higher 
at the ninemonth point But 
the directors said earlier this 
year that higher marketing 
costs, and lower margins on 
coffee — of which commodity 
General Foods is the largest 
processor in the U.S. — had 
eaten into profit margins. 

Marketing, general and 
administrative expenses rose by 
2222 per cent in fiscal 1982 to 
$2.5Bbn due to the inclusion of 
Oscar Mayer, high marketing 
spending on volume-building 
programmes and the intro- 
duction of new products. . 


Mead in Euromarkets 
with $ 60 m bond offer 


BY PAUL TAYLOR 

MEAD CORPORATION, a lead- 
ing U.S. paper and timber pro- 
ducer, is seeking to raise $60m 
with a seven-year Eurobond 
through Mead International 
Finance, its overseas subsidiary. 

The new issue wxH be priced 
on May 18 and carries an Indi- 
cated coupon of 15$ per cent 
reflecting the company's BBB+ 
niting. The note will be redeem- 
able after five years at 101 J and 
after six years at 200$. Lead 
manager is Hambros Bank. 

Elsewhere the market firmed 
slightly by between j and i of 
a point In quiet trading as some 
confidence returned. Neverthe- 
less the volume of new paper— - 
about $1.26bn of fixed rate notes 
has already been Issued this 
week — is still causing some 
problems in a quality conscious 
market. 


Some of the recent Issues 
were slow moving. W. R. Grace, 
for example, was trading at a 
bid price of 97 J against an issue 
price of 99J. 

In the D-Mark foreign bond 
sector the Republic of Austria 
launched a DM 100m 10-year 
note carrying a coupon of Si per 
cent priced at par. Lead 
manager is .Deutsche Bank. 

The note can be redeemed 
after seven years at 101* 
declining by { a point each year 
thereafter. The market was un- 
changed to slightly better. 

In the Swiss Franc foreign 
bond market the SwFr BQm 
Japanese convertible placement 
for Taiyo Yuden was given a 
coupon of 61 by lead-manager 
Credit Suisse. The market was 
up about i of a point in 
moderate trading- 


FT INTERNATIONAL BOND SERVICE 


The list shows the 200 latest international bond issues for which an adequate secondary market 
crisis. For further details of these or other bonds see the complete list of Eurobond prices which 


BY OUR MONTREAL CORRESPONDENT 


GEORGE WESTON, the key 
holding company of the Weston 
Food, industrial and resource 
products group, earned C$12.3m 
(U.S.SlOm) or 71 cents a share 
in. the firet quarter, against 
CS13.7m or 93 cents. 

Revenues, mainly from the 
food merchandising operation, 
were C$1. 7bn, against C$1.6bn. 

Margins for most resource 


products were depressed 
because of the recession, but 
operating income in food pro- 
cessing and distribution, moved 
ahead quite strongly. 

Weston is concerned over the 
unfavourable outlook for the 
North American economy 
during the rest of the year. 
Results should he satisfactory, 
but will fall short of 1981. 


This jntmtKMUKt appears as a matter oj record only 


April 1982 





CONSOR2JO Di CftEDlTO PER LE OPERE PUBBUCHE 

Medium Term Loan 




Lead Managed fry 


Arab Banking Corporation (ABC) 
Credit Commercial de France 
The Fuji Bank, Limited 


Managed by 


The Chuo Trust and Banking Company Limited 
Istituto Bancario San. Paolo di Torino 
AL-UBAE Group 


Banque Intercontincntale Arabc 

Mi esubishi Trust & Banking Corporation. (Europe) S. A. 

State Bankpf India . 

Succursl/e de Paris - 


Funds Prodded by 


Arab Banking Corporation (ABQ 

The Chuo Trust and Banking 
Company Limirad 

Mitsubishi Trust ft: Banking 

Co rpo ration (E urope) SLA. 

Union de Basques Arabes et Franchises 
“U.B.A1E Bahrain Brandi 

Nagnfin Bank Limited 
Banco Pinto & Sotto Mayor 


The Fuji Bank, limited 

Isa turo Bancario San Paolo 
di Torino 

Stare Bank of India' • 

Sucousalede Paris 

UBAF ARAB AMERICAN BANK 


Credit Commercial dc France 

CMbyen Orient) S. A.L. - - 

UBAE Arab Italian Bank SJ2A.— Rome 


Credit Commercial dc France 
Banque-In ccrcontinentale Arabc 

Tikai Bank Nederland NX 

Banco de Vizcaya— Bahrain OBU 

The Arab Libyan Tunisian Bank SAL 

-•Union Mc'ditcnaneenne 
dc Basques 


AEENSpa 

Arab Banking Corporation (ABO 
Agent Bank 



Strong start by 
U.S. insurer 

By Our New Tork Staff 

FIRST QUARTER operating 
profits of American Inter- 
national Group, a leading U.S. 
insurance concern, rose by 
nearly 23 per cent to just over 
$100m, excluding realised 
capital gains. Per share earth 
ings were $1.71, against $1-44. 

After net realised gains of 
$4m in the quarter and $9m 
a year ago, final net was 
5104m or SI. 78 a share, 
against S9H m or $1.60. The 
net result was arrived at 
after pre-tax foreign exchange 
losses of $176,000 in the 1982 
quarter and $2-9m in the 1981 
quarter. 

Premium income of the life 
insurance operations rose by 
a third in the quarter, and 
pre-tax operating income on 
this side was up from 524m 
to S30m. 


will be published next on Wednesday June 16. 


Globing prices on May 12 


U.S. QUARTERLIES 


BALDWIN-UNITED 



1982 

1981 

First quarter 

S 

3 

•.flOVCINIO 

.. 792. 7m 

■ 316.8m 

Net profits 

.. 24.45m 

14.53m 

Net per share 

231 

1 37 

COASTAL CORPORATION 


1SS2 

1981 

First quarter 

S . 

S 

Revenue 

.. 1.57bn 

1.77bn 

Nei profits 

6.0m 

13.3m 

Nat per share 

0.18 

0.51 

COMMONWEALTH OIL REFINING 


1982 

1981 

First quarter 

S 

« 

R« venue 

.. 164.2m 

304.6m 

Net profits 

.. morn 

122.3m 

Nor per share 

tfJ.94 

11.52 

HARCOURT BRACE JOVANOVICH 


1982 

1981 

First quarter 

S 

S 

Revenue 

.. 105 7m 

100.8m 

Net profits 

.. t5.71m 


Not per share 

tO. 65 

10.34 

RYAN HOMES 


1332 

1981 

First quarter 

* 

S 

Revenue 

. 55.0m 

90.8m 

Net profits 

.. 12.94m 

1.82m 

Nat per shsra 

10.44 

0.27 

SEDCO INC. 


1831-82 

1980*81 

Nine months 

6 

* 

Revenue 

. 671.6m 

265.7m 

Net profits 

. 243.1m 

43.1m 

Net per share 

-7.72 

1.35 

■ Includes special 

gain of 54.06. 

UNITED BRANDS j 


1981-82 1960-81 1 

TTtlrd quarter 

S 

S 

Revonue 

. 955.9m 

964.2m 

Nat profits 

. 3.07m 

3.33m 

Not p©r ehnre 

. 0-» 

0.26 

Nino months 



Rtrvonue .....i 

. 238bo 

2.38bn 

Net profits 

. 114.98m 

9.95m 

Net par share 

. fl.55 

0.75 

WHITE CONSOLIDATED INDUSTRIES j| 


1982 

1981 1 


U.S. DOLLAR 

STRAIGHTS Issued 

Aetna Llfs IS 86/97 .... 150 
Amax Int Fin. 1B4 92 75 

Amex . O/S Fin. 14*. 89 75 

APS Fin. Co. 164 89 ... 75 

Armco 0/S Fin. 154 86 50 

ATT 14*i 89 400 

Baker Int. Fin, 0.0 92 225 
Bit. Amer. NT SA 12 87 200 
Burroughs Int. 154 88 . 50 

Canadair 15 4 87 150 

Can. Nat. Rail 14*, 31 100 
Carolina Power 16*, 89 60 

CISC 16 87 100 

Citicoro O'S 15 84/9? 100 
Citicorp O/S IS*, 85/97 125 

CNA 15 7 . 97 75 

Con. Illinois 154 89 ... 100 
Dolce Pwr. O/S 154 89 60 

Dupont O/S 14', 88 ... 400 
Dupont O/S Cap. 0.0 90 300 
ECSC 14*. 87 50 


EIB 154 89 ISO 


Eksportfinane 14*, 89 
Gen. Elec. Credit 0.0 92 
Gen. Elec. Credit 0.0 93 
Getty Oil Int. 14 83 ... 
GMAC O/S Fin. 16 88 
GMAC O/S 15V 85/97 
Gulf Canada Ltd 14*4 92 

Gulf Oil 14*. 94 

Gulf Oil Fin. 0.0 92 ... 

Gulf Staten O/S 16 90 
Int.-Am. Dv. Bk. 15*, 87 
Japan Airlines 15*4 88 
Japan Dev. Bk. 15*, 87 

Nat. West. 144 31 100 

New Brunswick 164 89 75 

QKG 15*4 B5/97 50 

Ontario Hyd. 16 91 (N) 200 
Pac. Gas & El. 157, 89 
Pac Gas & El. 15*, 83 
J. C. Penney Gl. 0.0 34 
Phillips Petrol 14 89 ... 
Quebec Prov. 157. 89... 

R.J. Ryu Ids. O/S 0.0 92 
Saskatchewan 16 89 ... 

Spain 157, 87 TOO 

Statsforemp 157. 87 ... 50 

Sweden 14*, 88 1E0 

Sw. Ex. Cr. 16*, 84/93 75 

Swed. Ex. Cred. 15*4 89 100 
Swed. Ex. Cred. 0 0 94 300 
Tronscanado 16 89 ... 100 
Wells Fargo I. F 15 87 75 

WMC Fin. 15* : 88 ...... 50 

World Bank 15*4 8B ... 250 


SO 

400 

400 

125 

150 

IDO 

100 

175 

300 

60 

55 

50 

50 


80 

45 

350 

200 

150 

400 

126 


Chang® on 

Bid Offer day week Yield 
102** 102 s , 0 +1 14.15 

W37. 104*. +07, +17, 16.41 
977, 38*. +0*, +04 14.71 
10341044 0 +0415.23 
1007, 1014 +04 +04 15.01 
10141024 0 +04 13.78 
284 284 -04 +1413.74 
924 824 +04 0 14.20 

105 105*, +04 +14 14.33 

102 1024 +04 +1 14.77 

100 1004 +04 +14 14.53 

1044 1054 -.04 0 15.24 
1034 104 0 +04 14.82 

100*4 1004 -04 +04 14.64 
1014 102 -04 +04 14.62 

101 1014 +0*. +14 15.63 

103 1034 -04 +04 14.92 
1074 1024 +0*. +14 14.97 
1004 1014 -04 +04 14-23 

374 384 -04 +1 13.30 
994 1004 +04 +04 14.68 
1014 102 -0*, +04 15.04 
99 4 994 +04 +04 14.73 
304 314 +04 +1 12.74 
274 274 0 +04 12.74 
9B4 394 +04 +04 14.20 
1024 103 -04 +04 15.19 
394 997, +04 +04 75.43 
994 1004 “04 +1 14.71 
99 S»4 0 +0414.37 

29 29>, +04 +04 13.36 

101 1014 +04 +14 15.70 
10041004 0 +1 14.92 

1014 1024 +04 +04 14.69 
U»4 104 +04 +14 14.30 
1004 1014 -04 +04 14-50 
10541064 0 +1 14.72 
984 99 +04 0 16.13 

106 1064 0 +0*, 14.69 
1034 1044 +04 +14 14.74 
1034 1044 +04 +1 14.55 
234 234 0 +1413.05 
974 984 0 +0**14.50 

M04 7014 - 04 +04 14.93 
29 294 0 +14 13.41 

1044 1044 - 0*, +04 14.87 
994 994 +0*, +04 15.87 
1004 100*, +04 +0*, 15 47 
964 97 +04 +1 75.25 
103**1034 +04 +1414.60 
1004 1004 -04 +0*, 15.12 
214 224 -04 +1413.60 
1024 1024 +04 +04 15.32 
10141014 +04 +04 14.47 
984 994 “0** 0 15.65 
1024 1024 +04 +14 14.57 


Change on 

OTHER STRAIGHTS Issued Bid Offer day weeJTYmhf 
Can. -Pac-S. 164 89 CS 80 1394 994 0 +04 16.48 

30 
40 
50 
50 
50 
40 
18 
60 
40 
.60 
10b 


Average price changes... On day 0 on week +04 

DEUTSCHE MARK Change on 

STRAIGHTS Issued Bid Offer day week Yiaid 

Asian Dev. Bank 94 92 ISO 10041004 +04 -04 9,19 
Australis 94 91 300 


Australia 94 91 200 

Comp. Tel. Esp. 104 92 100 

Denmark 10 B8 100 

Denmark 104 92 7... 100 

EOF 94 92 100 

EEC 104 93 100 

EEC 94 94 200 

EIB 94 88 60 

Ireland 104 86 100 

Mexico 11 88 100 

Nacnl. Financiers 11 90 150 

Nat. West 94 92 100 

New Zealand 94 89 ... 200 

OKB 94 36 750 

Quebec 104 92 ISO 

Ouehee Hvriro 104 91... 150 

Renle 10 92 100 

Tauemautobahn 94 94 50 

Venezuela 114 91 100 

World Bonk 94 89 100 

World Bank 10 91 250 

Avorage pries changes 


1044 1054 +04 +04 8.57 
1041, 105*, 0 0 8.57 

1014 102 +04 +04 10.20 
103 1034 -04 +0*4 339 
103*3 104 0 .0 9.51 

1024 1024 +04 +04 9.46 
1044 1044 -04 -04 9.45 
1034 1034 +04 0 9.2S 

1024 1034 +04 -04 9.15 
1014 1024 —04 -04 9.47 
1014 1024 -04 -14 10.48 
1004 1004 -04 -04 10.91 
1054 106*, -04 +04 8-94 
1044 1054 +04 -04 8.84 
1024 1034 +04 +04 9.05 
105*, 106*, +04 +04 9.14 
W541054 0 -04 9.34 

100 1004 +04 -04 9.96 

1034104 0 +04 3.33 

101 1014 0 -0411-2S 

1024 1024 0 0 E.96 

1054 1064 -0*4 0 9.06 

On day 0 on week 0 


First quarter 

Revenue 

Net prole* 

Not par shtfM 

t Loss. 


s. s 

507.«i» 555.1m 
6.73m 16.89m 
0.43 1,41 


SWISS FRANC Change on 

STRAIGHTS. Issued Bid Offer day weak Yield 

Ansart Transoort 7*, 92 SO 104 1044 +04 +1 6.90 

Auca la a 77, 32 80 

Australia 6*- 94 100 

Cse. Nat. TEnargie 7 92 ioo 

CFE-Maxico 84 92 60 

Co-op. Danmark 84 92 25 

Crown Zallrbch. 64 92 100 

Denmark 74 91 100 

EIB 7*4 92 100 

Elei. da Franca 7 92 ... TOO 

ENEL a 92 44 

First City Fin. 8*, 92... 2S 


7.83 

6.00 

6.77 

8.57 


Kommunlano 74 92 

Manitoba 7 92 100 

Mitsui OSK 6*i 92 100 

National Pwr. Co. 8 92 30 

Nippon T. and T . 64 92 100 

OKB 84 92 IPO 

Ost. Donaukrait 7 92... 100 
Ost. Pasta par 7*, 92 ... ioo 
Fhilip Morris 84 92 ... 100 
Ouabec 74 S3 ............ ioo 

Sckijiff Pre. 54 92 WW 70 
Soc. Lux. de Cn*. 84 92 80 

Tranacanada Pipe. 7 94 100 
Vorarlberg Kraft 64 92 60 


994 +04 +04 

104 1044 0 +04 

tIOV.IOIT, +04 +0*, 

974 93 +04 -14 

1044 104+ -04 -04 7.72 
1024 1024 +04 +04 6.38 
1024 102*, +04 +14 6.90 
1024 103 +04 +1 6.83 

102 1024 +04 +04 9.69 
101 4 1014 0 +14 7.78 

10441044 +04 +14 7.56 
101 1014 —04 +04 7.09 
108 1064 0 +0*. 6.14 
101 1014 +04 +04 6.34 
1034 104 +04 -04 7.42 
10341034 0 +04 6.13 
1044 1044 -04 -04 7.09 
1034 1034 +04 +0*, 6.50 
10341034 0 +04 8-37 
1034 1044 +04 +04 6.07 
10S4 105*, +04 +1 0.61 

1054 1054 -04 0 5.00 

105 1054 “04 +04 7.2S 
10841034 -14 +04 6.5* 
IBS 1034 +04 +04 631 


Crd. Fonder 174 89 CS 
Hudson Bay 17 89 CS... 

Montreal 17 89 CS 

Oueb. Hydro 164 89 CS 
Quebec Prow. 17 88 CS 
Simpsons 164 89 CS ... 

U. Bk. Nwy. 9*, 9Q EUA 
Algernon* Bk. 104 86 Ft 
Aifilaa- Group 124 86 F| 

Amro Bank 12 36 FI ... 

Phil. Lamps 104 B7 FI 
Pierson 104 86 FI ... . 50 

Rabobank. 12 86 FI 60 

OKB 14 86 FFr 400 

Solvay et C. 144 86 FFr '200 

Atone 14 65 £ 20 

Beneficial T44 90 £ fDJ 20 

BNP 134 91 E 15- 

CECA 134 88 C 20 

Fin. Ex. Cred. T34 88 £ 15 

Gen. Elec. Co. 124 69 £ EO 
Hiram Walker 144 B6 £ ZS 
Privatbonken 144 88 £ 12 

Quebec 154 87 E 35 

Reed (Nd) NV 164 89 £ 25 

Royal Trusted 14 86 £ 12 

SDR France 154 92 30 

Swed. Ex. Cr. 134 86 E 20 
Euroflma 10*, 87 LuxFr 500 
EIB 94 88-LuxFr 600 


1*94 1004 +04 +1 17.11 
tlOO IOO 1 , -04 -0416,33 
1102 1024 0 +0416.39 
1994 1004 -04 +04 18.48 
t102* z 103 +04 +04 16.19 
1974 974 +04+1417.38 
1894 90*, 0 -0411.49 
10141024 +04 +04 9.57 
1064 1064 +04 +1 10.37 
1064 1064 +04 +0410.05 
1014 1014 +04 +0*, 9.91 
100*, 101 +04 +04 9.98 
1064 1074 +04 +04 9.83 
924 934 +04 +1 16.72 
924 93*. 0 +0417.39 

95 96 +04 +04 15.© 

874 884 +1 +14 16.85 
92 93 +04 +24 15.06 

S* 5 . 954 +04 +14 14.66 

96 964 +04 +1 15.01 
924 934 +04 +04 14.11 
97*, 984 +04+-14 14.34 
934 914 +04"TU4 16.02 
1034 10*4 +.04 +24 14.35 
103 10* +04 +14 1583 

974 984+04 +1414-58 
994 TO04 +04 +14 15.48 
974 984 +04 +14 14-33 
964 974 0 -0411.30 
944 954 0 0 11.04 

FLOATING RATE 

NOTES Spread Bid Offar C.dte C.cpn C.yid 

Allied Irish 54 92 04 98*, 99 15/To 15.69 15.89 


Bank of Montreal 5*, 91 0*, 

Bk. of Tokyo 54 91 fD) 0*, 

Bk. Novo Scotia 54 S3 04 

BFCE 54 88 04 

RFCE 54 87 04 

Caisse Nat. Tele. 54 90 04 

CCCE 54 2002 04 

Co-Ban Eurofin 54 91... 04 

Credir Agncole 54 97... 04 

Credit Lyonnais 54 97- . 04 

Credit Nat. 5*4 94 *04 

Denmark. Kngdm. of 92 0*u 1994 
Den Norake Cred. 54 93 04 974 

GanfiMflca 54 92. 04 

In'd. Bank Japan 54 88 04 
Lloyds Eurofin 54 93 ... §04 

LTCB Japan 5*- 89 0*4 994 

J. P. Morgan 54 97 §04 994 

Nat. Wost. Fin. 5*4 91... *»>- 

New Zealand 54 87 

Nippon Credit 54 90 ... 

Nordic Int. Fin. 54-81... 

Offshore Mining 54 91 


994 994 29/10 15*, 15.22 
*84 994 10/6 134 ISM 
994 994 29/10 154 IBto 
994 994 28/10 15 15.08 

994100 27/7 164 16.29 
994 994 21/4 154 15.81 
98% 984 11/8 1*82 15.02 
994 994 11/10 16 16.10 

994 994 24/9- 15.44 15.53 
994 994 1/10 16 16JM 
984 984 9/6 14.69 14.89 
994 25/8 15.44 15.55 
98*4 4/6 13.56 13.84 
*94 1004 30/6 75': 15.52 

994 99 s , 12/11 144 11.59 
994 99 s , 29/4 17.13 17.24 
* ' 99 s , 16/7 1531 16.41 
99 s , 12/8 144 H.72 


Scotland Int. 54 92 


Eocieie Generals 5*, 95 
Standard Chert. 5*4 91 
Sumitomo Fin. 54 88 


504 

9*4 

994 15/7 

15.19 

15-26 

0>, 

99 1 , 

994 7/10 15.56 

15.62 

04 

994 

994 10/8 

16.06 

16.14 

04 

98*4 

994 fi/11 154 

15.40 

04 

B8*, 

994 2/6 

13 

13.13 

04 

99 

994 17/S 

14», 

14.48 

04 

*84 

994 23/8 

154 

15.53 

04 

99 

994 24/5 

134 

13.35 

0*4 

99*, 

994 1/9 

15.31 

15.41 

04 

98*4 

99418/5 

13.31 

13.45 

04 

994100 s/a 

16 

16D4 

04 

99 

99426/8 

15.31 

15.43 


Toronto Damin’n S*» 92' CP, 984 99411/8 IIP, * 
Average price changes... On day 0 on wreak +04 


CONVERTIBLE Cnv. Cnv. 

BONOS - date price 

Ajinomoto 54.96 -7/81 933 

Bow Valley Inv. 8 95 ... 4/81 23.12 
Bridgestone Tire 54 SB 3/82 *7Q 

Canon 64 95 1/81 829 

Daiwa Secs. 54 96 12/815134 

Fujitsu Fantrc 44 S6 10/81 "5641 

Furukavua Elec. 54 96... 7/81 300 
Henson O/S Rn. 94 96 8/81 1 36 

Hitachi Cable 54 96 2/82 SIS 

Hitachi Cred. Cpn. 5 96 7/81 1812 

Honda Motor 54 97 3/82 841 

Inchcape 8 SB ; 2/81 4.56 

Kawasaki 5*. 96 9/81 229 

Marui 6 96 7/81 8*6.4 

Minolta Camera 6 96... 10/81 826.4 

Minorca 94 97 ....1 S/82 8.16 

MuraU 54 96 7/81 2168 

NKK 64 96 7/81 188 

Nippon Chetn-C. 5 91. ..10/81 919 
Nippon Electric 54 97... 2/82 8*6 
Orient Finance 54 97 ... 3/GZ 1205 

Sanya Electric 5 90 1Q/8T 68 2 

Sumitomo Elec. -54 97... 3/82 5773 
Sumitomo Met. 54 96.. .10/81 296.1 
Swiss Bk. Cpn. 64 90. . 9/80 191 
Konlshlreku 6 SO DM ... 2/82 SB5 
Mitsubishi K. 6 89 DM 2/82 283 


Chg. 

Bid Offer day 
914 *34+14 4J23 
97 99 +04 *6JO 

92 934 +04 —2.36 

1044 1064 +04 *.85 
tGS 70-1 -5.15 
35 97 -04 **« 

99 1004 0 — 5.90 
188 87 — Z -10.46 

*14 93 +14 1.12 
864 874+04 3.69 
904 92 +14-0.80 
1*2*, 84 -1 19.52 

724 74 -04 0.71 
106 107*, +14 4-2Q 
64 654 -1 4*3 

1884 88 +04 M.fifi 
64*, 66 +04 1338 
844 864 —04 -13-60 

68 70 0 9*5 

89 1004 +14 9.25 
964 974 +14 2-68 
724 734 +1 7.67 

914 *3 +1 026 

69 704 —04 15.19 

78 80 +3 21*8 

1024 1034 “04 3.24 
35 86. -04 1Z3B 


Average price changes... On day +04 on week +04 

Change bn 

YEN STRAIGHTS Issued Bid Offer day week Yield 

Asian Dev. Bk. 84 91 15 10141014 0 +04 804 

Int.-Amer. Dev. 84 91 15 10241034 0 0 8.43 

Japan Airlines 74 67.., 9 874 984 O +04 8.39 

New Zealand 84 87 ... 15 1014 1024 0 0 131 

World Bank 84 32 ._ 20 100\ 101*, O -0 8J5 

Average price change*... On dayo on week +04 


“ No information available —previous day’s price, 
t Only one market maker supplied a price. 

Straight Sonde! The yield is the yield to redemption of tha 
mid-prlca; the amount issued is in millions of currency 
units except lor Yen bandar where it la In billions. 
Change on weefc>*Cfianga over price a week earlier. 

Floating Rate Notest Denominated in dollars unless other- 
Mrise.rndrcated. Coupon shown is minimum. C.dte^Data 
next coupon -becomes effective. Spread •= Margin about 
six-month offered rate {£ three- month; | above mean 
rate) for U.S. dollsra. C.cpn ■> The current coupon* 
C,yW“Th* current yield. • 

Convertible Bonds: Denominated in dollars unless ether- 
wise Indicated. Chg _day= Change on. day. Cnv. date— 
First data for conversion into shares, cnv. prior— 
Nominal amount of bond par share expressed in 
currency of. share at conversion rate fixed at Issue- 
Prom~Pftn»At*ge premium of the current effective price 
of acquiring shares via the bond over the most recant 
price of the shares. 


©Tha Financial Times LMU.1S82. Reproduction hi whW* 
or ‘in pan (n any -form not paitnlned without written 
cun* an 4 Data supplied by UATASTREAM International, 


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Financial Times Thursday May 13 1982 

Gemyiani&s and Markets INTL. COMPANIES & FINANCE 



AEG seeks injection of fresh equity! 


BY KEVIN . DONE JN BtANKFUKT 


AB&TEUEFtiNKEN. the foun- 
eialljr-stricken West German 
electrical anl electronics group, 
is expecting an operating loss 
of DM -HJQnWSOm fSlT5m-197m) 
this year following a deceit of 
more than DM 600rn in 1981. 

Its 24-member banking con* 
sortimn is to meet on June H 
to consider further short-term 
measures needed to shore up 
the group’s shaky finances for 
1982, probably including fur- 
ther loan writeoffs and the 
granting of subsiidsed credits. 

Herr Hoini Dilrr, AEG chief 
executive, made it dear yester- 
day. however, that the group’s 
longer term future could cniy 
be ensured through the raising 
of extra equity capital. ■■ AEC’s 
problems must be solved 
through more equity* and not 
through more debts," he said. 

The concern's existence is still 
being endangered by the mount- 
ing losses that are being run 
up by its consumer electrical 
goods divisions, which are likely 
to accumulate a deficit of 
DM 200m-250m this year :n 
addition to expected overall 
restructuring costs of DM IQOm- 
150m. 

Consumer goods account for 


around one-third of AEG '5 
.DM 15.4bn turnover, but they 
will contribute the lion’s share 
cf the group's losses thus year. 

Herr DQrr said that the capi- 
tal goods limsums—induilinji 
Olympia, the office information 
equipment manufacturer — 
which make up two-thirds of 
group turnover, should return 
a small profit overall in 1382. 
Hie deficit in this division is 
understood to have totalled 
around DM 170m last year. 

The ehter question mark con- 
tinues m bang over AEG’s Tdc 

funken subsidiary. the maker of 

televisions and video and audio 
products. 

TeJefunken suffered a disas- 
trous year on its foreign opera- 
tions in Brazil, Mexico, Spain 
and Italy, and despite cutting 
domestic losses by DM GOm, it 
is clear that the main AEG 
board ha* concluded that the 
Teleiunkon subsidiary must 
either be disposed of or pushed 
into co-operation with another 
consumer electronics manufac- 
turer. 

"There is no way we can 
survive in brown goods in tho 
medium-term with our volumes 


of production,” said Herr Dbrr. 
Its television plant at CcHc 
operated at only 77 per cent 
of its 800,000 capacity iatf year. 

In white goods—’ washing 
machines. dish - washers, 
cookers and refrigerators-— 
AEG is more confident of re* 


ACTS RECENT PERFORMANCE 


Sales* 

Net profit/loss 


DMbn 

DMm 

1976 

IU 

397 

1977 

1L3 

8 

1978 

12.0 

347T 

1979 

11.9 

9Wt 

1980 

12J 

27 Ot 

1981 

115 

«4t 


* Domestic group sales, t Loss. 

gaining profitability throng}] 
internal measures involving 
further reductions in die work 
force and the closure of some 
plants. 

The group, which Is the mar- 
ket leader in household appli- 
ances in West Germany, is also 
investing around DM HOm this 
year, however, in two new plants 


in Nuremberg and Mainz. i 

AElTs tutal capital invest- 
ment this year is expected to 
rise to around DM 570m — DM 
510in In West Germany— from 
DM 516m last year. 

The AEG workforce world- 
wide has again declined drama- 
tically as restructuring 
measures took a further toll 
with the total falling to 123.700 
by the end of 1981 from 135,900 
a year earlier and a peak of i 
163,000 in 1978. A further cut 
is expected this year. 

In the first quarter of 2952 
AEG Increased turnover world- 
wide by 4 per cent with a 10 
per cent rise in foreign sales 
hut virtually static domestic 
turnover. For the fjfil year the 
group expects an increase in 
sales and new orders of be- 
tween 3 and 5 per cent. 

AEG is still confident of 
reaching agreement with 
United Technologies of the U.S. 
for the manufacture of semi- 
conductors. UTC is expected to 
take a substantial stake in 
AEG’s semi-conductor division. 

But financing problems have 
arisen in the group's planned 
joint venture production of 
electric motors with BauknechL 


Helaba 
sees 1982 
recovery 

By Stewart Fleming m Frankfurt 

EXTRA COSTS of financing 
feed interest securities with 
expensive short-term funds m 
mid-year, hit interest earnings, 
and overall 1981 profits of 
Hessische Landosbank-Girozen- 
trale ( Helaba j. West Germany’s 
tenth largest eomercial bank. 

But falling interest rates 
since September have brought 
a marked improvement in 
profitability and operating earn- 
ings doubled in the first quarter 
of the current year. Dr Heinz 
Sippei, chairman of the manag- 
ing board, says that the bank 
will earn an operating profit in 
1982— exclusive from its own 
trading in securities, gold and 
foreign exchange — of over 
DM 100m ($44m), compared 
with DM 40m in 1981. 

Assets of the bank last year 
increased to DM 59bn from 
. DM 54-4bn. But lending growth, 
particularly in long-term lend- 
ing in which the publicly-owned 
Landesbanks are traditionally 
slrong. was weak. 

Interest earnings fell to 
DM 180m from DM 241m in 
1981, Operating earnings were 
down from DM 101m to DM 40m, 
while tfter-tax earnings declined 
from DM 65m to DM 45m. 

An improving trend in 
operating earnings is now ex- 
pected and Dr Sippei suggests 
that the bank can again begin 
to consider paying a dividend. 
There has been no dividend 
since the mid-1970s when the 
bank required an injection of 
around DM 2bn in public foods 
to offset losses. 


Estel Hoesch returns to profit 


8Y JAMES BUCHAN IN DORTMUND 


ESTEL HOESCH WERKE, the 
West German arm of the Ger- 
man-Dutch steel venture. Estel. 
should return to profits this 
year. 

Herr Hero Brahms, a board 
member of the Dortmund con- 
cern which is negotiating the 
hreafc-un of the Estel venture 
with its Dutch partner. Hoo- 
govens, said me Dortmund 
operation made a profit of 
DM 20m i$8.7m) in the first 
quarter of this year. 

This result contrasts hsarply 
with the 1981 results of Estel 
itself, which lias owned Este! 
Hoesch Werice since 1972. and 
Hoesch, the German holding 
company which onus Estel 
equally with Hoogovens. 

Estel last year lost FI 69Bm 
($274.3m) last year, against 
FI 14Sbn in 19S0. The I in- 
ternal sales of FI 14.3bn against 
FI 148n in 1980. The trans- 
national venture has lost a total 
FI 2.3bn in the seven years 
since the beginning of the steel 
crisis and h3S seen it capital 
base shrink from FI 3.5bn to 


FI 1.4bn. 

The Hoesch holding company 
recorded a loss of DM 456.8m 
for 1981. This necessitated a 
writedown in its Estel share- 
holding from DM l.lbn to 
DM 626m. 

Herr Brahms ascribed Eslcl’s 
1981 result to the continuing 
structural eri-is in the s>teel 
industry and sharply increased 
costs, which caused a FI 770m 
loss in steel operations, com- 
pared with FI 490m in 1980. 

Apportioning the Estel losses 
remains the sticking point in 
negotiations with- Hoogovens, as 
Dr Detlev Rohwodder, Chief 
executive of Hoesch. made clear. 

He conceded the Dutch claim 
that the bulk of the losses 
were attributable to Estel 
Hoesch Werke, but insisted that 
these should be divided equally 
according to their equal share- 
holdings. 

"You cannot work together 
equitably for 10 years, and then 
dig up reasons to charge the 
other for tho losses, ” he said. 

Hoesch is now negotiating 


with Krupp Stahl to merge i 
some or all of their steel opera- [ 
tions into a purely German steel 
giant, Ruhrstahl. 

Dr Rohwedder said that thee 
talks could go on quite inde- 
pendently, but it is clear that 
Hoesch wants to sortie the Estel 
business as soon as possible. 

A second difficulty with Hoo- 
govens concerns the division of 
Estel's production quota under 
the European Community's 
crisis scheme, which is due to 
expire at the end of June. 
Under the Estel arrangement, 
Hoesch was involved in finishing 
Dutch-produced steel and must 
regain a quota to take to Ruhr- 
stahl, which will have a 
theoretical capacity of 11m 
tonnes. 

Although German producers 
have, on occasion, complained 
bitterly that the quota system 
has penalised their more 
modern plants, the industry 
generally is now in favour of an 
extension of the crisis regime 
for a further 18 months. 


Swiss brewer in new soft drinks move 


BY JOHN WICKS IN ZURICH 

SIBRA, Switzerland's leading 
brewer and soft drinks produc- 
er, is offering DM 400 ($175) 
each for the outstanding capital 
of Sinalco of West Germany. 
The bid is being made through 
the Swiss group’s German sub- 
sidiary, Sibra-Verwaltungs. 

Last October Sibra had pur- 
chased a majority stake, said 
to have been more th3n 75 per 
cent, in the German soft drinks 
company. Latest figures show 
that Sibra had sales of SwFr 
276.9m ($I45m) in the year 
ended September 3 last. While 
Sinalco 's turnover was of 


DM 55m. . 

The new bid foresees pay- 
ment of an annual DM 13 com- 
pensation to Sinalco sharehold- 
ers who prefer not to accept. 

• Turnover of the Swiss-owned 
Adia group dropped by 13 per 
cent last year to SwFr 737m 
f$380m). At 1980 exchange 
rates, the decline would have 
been of about 4.5 per cenL 

The year was characterised 
by internationally sluggish de- 
mand for temporary employees. 
This business accounts for 82.6 
per cent of group turnover, 
the remainder being accounted 


for by permanent employment 
and security services and a 
small sport and leisure division. 

However, an unchanged divi- 
dend of SwFr 90 per bearer 
share is expected, and prospects 
are favourable. The company 
expects an improvement in the 
economy this year and claims 
that the temporary-employment 
market Is “ looking-up ” in the 
U.S. 

In the UK (where Adia owns 
Alfred Marks) and Holland the 
markets are also improving and 
business levels in France are 
said to be “acceptable.” 


Harvester pulls out of Enasa engines deal 


BY ROBERT GRAHAM, IN MADRID 


INTERNATIONAL HAR- 
VESTER. the troubled U.S. farm 
equipment and motor group, has 
abandoned all plans of direct 
involvement in Spain's state- 
owned truck producer. Enasa. 
The two companies are working 
on ways to undo the July 19S0 
agreement whereby Harvester 
agreed to take part in a S200m 
engine plant and assume 
eventual control of Enasa. 

This is the second time in two 
years that efforts to secure the 
future of a Spanish automotive 
company through integration 
with a multinational partner 
have collapsed. The previous 
instance involved the state-con- 
trolled car producer, Seat, and 
Italy's Fiat. 

Both agreements have. foun- 
dered through a combination of 
international recession and the 
cash-flow’ problems of the pros- 
pective multinational partner. 

In January Harvester 
informed the state holding com- 
paiiv. INI, that it would be 
unable to fulfill the 1980 agree- 
ment. Since then there have 
been various efforts to salvage 
the deal. However, the recent 
departure of Mr Archie McCar- 
dell. Harvester chief executive. 


has removed all hope. Mr 
McCardeil was the main pro- 
ponent on the Harvester side of 
Enasa tie-up. 

The 1980 deal followed a 
search by INI for a partner that 
included sounding with a num- 
ber of the international groups 
including Nissan. The basis of 
the deal was that INI sell Har- 
vester 35 per cent of Enasa with 
a view to eventual control. INI 
agreed to cover all losses for 
three years and in return Har- 
vester pledged to provide truck 
technology, assume manage- 
ment control and invest — on a 
65/35 basis— in a new engine 
plant. Total investment by INI 
and Harvester was expected to 
be around 5400m. 

For Harvester this bad the 
advantage of offering quick 
construction of a new engine 
plant to cope with an expected 
shortfall in its existing capacity. 
In addition, Enasa, Die leading 
medium and heavy truck pro- 
ducer in Spain, provided access 
to the projected Spanish market 
and to the EEC when Spain 
joined. 

Last September Harvester 
took over management of 
Enasa. haring recruited Mr Carl 


Levy to be the chief executive, 
Mr Levy was formerly in charge 
of establishing the Ford plant 
at Valencia. 'Hien In December 
Harvester revealed that it was 
freezing the engine plant pro- 
ject. And in January, after a 
visit by Mr McCardeil to Madrid, 
it became clear that the agree- 
ment could only survive in 
reduced form. Now with tbe 
exit last week of Mr McCordeW, 
tiie agreemenl has been aban- 
doned and ways are being 
sought to have an agreed 

divorce " without resort to 
legal action by INI. 

This is likely to take the form 
of Harvester opening an account 
in INI’s favour to the tune of 
Pta lbn ($l0m) to cover 
royalty payments by Enasa. 

Enasa is now expected to 
adopt a different approach to 
finding an international partner. 
Instead of seeking one group 
to collaborate with or assume 
control of Enasa, INI will try 
and establish a series of product 
agreements. This means that 
INI will continue to hold con- 
trol of the Enasa equity but will 
enter into deals on specific 
elements of Enasa's production. 
This applies both to complete 


processes like manufacture of 
buses and to agreements on 
components like gear boxes 

Enasa is confident that this is 
the correct strategy, especially 
as the fatiureof the Harvester 
deal permits the continued in- 
corporation of its all important 
military vehicle production. This 
was scheduled to be hived off to 
the Spanish Defence Ministry 
but is now acquiring growing 
importance within Enasa. 

Enasa makes military trucks 
of varying sizes plus a four- 
wheel drive amphibious ar- 
moured personnel carrier. Apart 
from Spanish military orders, 
considerable hope is being 
placed on sales to the Middle 
East and Latin America. Enasa 
already has two contracts worth 
$440m with Egypt to supply 
7,500 trucks and 500 buses. Last 
week it was announced that dis- 
cussions were at an advanced 
sia?c for a further 5,000 trucks 
and 1,500 amphibious vehicles. 

These orders, couple with the 
beginnings of a renewal of the 
bus fleets of the major Spanish 
cities, are expected to provide 
a cash-flow cushion and cut 
losses which for 1981 are esti- 
mated at around Pta 10.5bn. 


THE LONG-TERM 
CREDIT BANKOF 
JAPAN FINANCE N.V. 

U.S. $75,000,000 Floating Rate 
Notes 1978-1985 

For the six months 

12th May 1982 to 12th November 1982 
the Notes will carry an 
Interest rate of 1 4%% per annum 
with a coupon amount of U.S.S74.1 1. 
Bankas Tfcnst Company London 
Agent Bank 



U.S. $50,000,000 
Hapoalim International N.V. 

Guaranteed Floating Rate Notes 19S4 
For the six months 
13/5/82 to 15/11/K! 

The Notes will carry an 
interest rate of 14»$ per annum 
Coupon Value USS75S.S5 
Listed on The Stock Exchange, London 
Agent Bank —National Westminster Bank PLC, London 


Johnson 

group 

Bjr William Duftforce, Nordic 

Editor, in Stockholm 

THE Axel Johnson companies, 
which make up Sweden’s 
Ihird-largest industrial and 
trading group, have reported 
poor results for 1981. The 
ownership pattern is at pre- 
sent being reshuffled and con- 
centrated on the two largest 
companies, Nnrdstjernan and 
A. Johnson and Co., with con- 
trol remaining in the bands 
of the Johnson family- 

Vorditjernan. which em- 
braces shipping, building, 
special steel and engineering, 
showed a pre-tax loss of 
SKr 42m (S7.2m) on a con- 
solidated tomorer of 
SKr 8.5bn in Its preliminary 
report for 1981. This com- 
pares with earnings of 
SKr 110m realised on sales of 
SKr 7*5bn in the previous 
year. 

An extraordinary income of 
SKr 105m. mostly from sales 
of ships and property, enables 
Nordstjernan to show a pre- 
tax profit of SKr 63m for the 
vear against SKr 284m in 
1980. 

The heaviest loss was sus- 
tained by the special steel 
operation, whose result 
tumbled from a pre-tax profit 
of SKr 2£m io 1980 to a loss 
of SKr 163m. The insurance 
business boosted earnings 
from SKr 45m to SKr 108m, 
and the construction business 
turned in a profit of SKr 44m. 
Shipping showed a pre-tax 
loss of SKr 6m. 

A. Johnson and Company is 
divided into Swedish and CJS. 
companies. The Swedish con- 
cern. which trades in oil, coal, 
special steels, ores, metals 
and machinery in more than 
30 countries, made a pre-tax 
loss of SKr 57m, down by 
SKr 96m, on sales totalling 
SKr 4^bn. Turnover declined 
by about SKr 900m, mostly 
as a result of the restructur- 
ing within the group. 

A. Johnson and Co Inc, the 
U.S. company based in New 
York, operates in oil, stainless 
steel, metals, engineering and 
shipping. Ii reports a pre-tax 
profit of SKr 97m. ahead by 
SKr 32m, on sales of 
SKr 4.8bu, but the figures do 
not giro any ' Indication of 
extraordinary Income. 


Anic in U.S. 
fibres agreement 

By Our FirundaJ Staff 

ANIC. the petrochemical sub- 
sidiary of ENI, the Italian 
stale energy group, has 
signed an agreement with 
Hercules, the U.S. ehemicals 
group, to produce carbon 
fibres and thermosetting 
resins under Hercules’ 
licence. 

Anic said it would start 
production of the fibres and 
resins in the second half of 
1983 and would market them 
all In all European countries. 
It did not give any financial 
details of the deal. 


mn 


A grooving international 

riiinii presence 


T»« 

Saiivwu 

B«ik 

Ltn&d 



Theintemational consortium which 
provides a full range of services 
including short medium and long term 
credits, Eurocurrency deposits and 
foreign exchange dealings, underwriting 
and distribution of securities. 


Associated Japanese 
Bank (International) 
Limited 


.Th.;- 

Nbercua 

Screnik-s 

CaLal 


iv- 29-30 Comhill, London EC3V 3QA 

Telephone: 01-623 5661 Telex: 883661 

Limse.l 



IRELAND 

U.S. $50,000,000 
Euro-Note Facility 


Managed by 

Swiss Bank Corporation International Limited 
Sumitomo Trust International Umited 


T&rs&favrtSaensHiv&notbereGistBTeaun&rfrieSaaHttlasActoftg&afttialMettStitesofAmerittitne'Jia'Janfmay 
rstbc cflbredcrscVd'nrf.y ote&realyin the UnaotiStilesorto U.S. persons (except pursuant loan exemption meter DwAO). 

March, 1982 


AS these securities having been sold, this announcement appears as a matter of record only: 



The Chase Manhattan Corporation 

$ 150 , 000,000 

150,000 Units 

$1,000 15%% Notes due November 1, 1992 

and 

$1,000 Common, Stock Equity Contracts 


$ 175 , 000,000 

Zero Coupon Notes due May 1, 1992 


Lehman Brothers Kuhn Loeb 


Merrill Lynch White Weld Capital Markets Group 

MemflI^aA.Ptog.BeamrfcSmMi IhcntpnKtfwl ^ 


Salomon Brothers Inc 


Morgan Stanley & Co. The First BostmCoiporation BlythEastman Paine Webber 

iKOpcnttd T n fwrpn r ahwt 

Bache Halsey Stuart Shields 

lacopmatal 


Goldman, Sachs 8 b Co. 


Bear; Steams & Co. 

t+g** - Dillon, Read & Co. Inc. 

Donalds on, Jenrette DrexelBi mham Lambert - E. F. Hutton 8s Company Inc, 

Kidder Peabod y 85 Co. L. P. Rothschild, Unterbetg; Tbwbin M. A. Schapiro & Co., Iric. 
Shearson/American Express Inc. - Smith Barney, Hams Upham & Co. 

Warbu^gff^ Becker WerthdmfisCo^Inc. , Dean Witter foyoddshia 

AptS 30,2982 . _ . , . .. 



SE£» INTL. COMPANIES & FINANCE 


Financial Times Thursday May 13 1982 

UK ECONOMIC INDICATORS 


PETROFINA 


Static sales and lower 
profits at Citizen Watch 


In millions of £ 


BY YOKO SHBATA IN TOKYO 


Hindustan « 
Levers to jg 
keep foreign gg 
control S 


ECONOMIC Atlivrt v— In^ea of industrial prtdnetion, martn- 
factarang output (1975=100); ahymeerigg orders (1975=100); 
retafi sales votarne (1978=100), rotaS sales value (1978=100); 
registered oaHgp fo y m e n t (exefedlag school leavers), and 
unfilled vacancies (000s). AH Beasonau; adjusted. - 

' IndL Mfg. Eng. ' Retafl Retail Unero- 

' prod, output order voL value* pJoyed Vacs. 


:■ f 


Fetrofina's consolidated profit 
Dividends^ 

Per share 
Cashflow 

Sates and othsr revenue 
Shareholder's equity 
Networking capital 
Long-term debt 
InveSment expenditure 


142.8 138.8 

62.7 59.8 

francs 265 francs 245 


CITIZEN WATCH, Japan’s 
second largest manufacturer of 


to account for 5 peT cent of the 
total and machine tools by 30 


445.4 

5,6004 

8412 

185J) 

595.3 

263.6 


372.6 
4,990.1 

893.7 

177.7 
715.5 
250.0 


wrist watches, suffered a set- per cent to account for 6 per 
back in earnings for the year cent 


sector of the Japanese robot By R . c. Murthy in Bombay 
market Yaskawa is believed to 

hold almost an 80 per cent share THE Indian Government has 


ended March 31 because of a 
world-wide over-supply of 


of the arc welding market permitted Hindustan Lever, the 


current 


increase in world demand for company last year were servo 


Other growth sectors for the country’s third largest private 


company m terms 


watches and a decline in unit watches is expected and the motors (used in computers and sales, to retain a 51 per cent 
prices caused by price cutting company forecasts the value of peripheral equipment), which foreign equity shareholding. 


4th qtr. 
Sept 
Oct 
NoV 
Dec 
1963 
1st qtr. 
Jan. 
Feb 
March 
April 


in competition with Hong Kong watch sales at Yll2.3bn. down 4 rose 


The company has fought since 


Yield on shareholder’s equity 
Cash flow to shareholder's equity 


amount distributed lo shareholders has increased 
every year far the last 1 9 years, rising Worn 
520 million to 4,61 6 million Belgian francs. 


.Copies of the English edition of the full report 
can be obtained on application to Petrofirta (UK) Ltd-, 
Petrofina House, Ybrk Road, London SE1 7 NT 


companies. per cent. 

Unconsolidated operating °f °® c ® ® 
profits fell by 29.4 per cent to ^ 31 _ 

YS.69bn (£3Sm) and net profits t00ls ® 
were 21.8 per cent lower at P*P y 
Y4-64bn. Turnover came to sale s total 
Y 1 32.53b n ($576m). up 02 per per cant o> 
cent Profits per sham were pn "“ s . arc 
Y22.49, compared with Y30.30. up ||l pe 

The company sold 3.37m 34 
watches in the year, 82 per cent • YASKA 
more than in 1980-81 with ufactunng 


per cent. However, with sales numerical control machines for 1973 for this concession under 
operating °f ofSc e equipment expected to machine tools which gained by foreign ownership rules. The 
t eentto rise *>7 31 per cent and machine 40 per cent Exports also did ruling will allow it to remain a 
iet nrofits tools by 50 per cent the com- well, rising by 35.9 per cent {subsidiary of Unilever of 


OUTPUT — By market sector; consumer goods, investment goods, 


puny anticipates a full year although still accounting for a I Europe. 


Unilever 


intermediate goods (materials and fuels); 
metal manufacture, textiles, leather and < 
housing starts (000s, monthly average). . 


:eering output; 
5 (1975=100); 


sales total of Y134bn, up just 1 modest 20.9 per cent of total 


per cent over 1981-82. Operating sales. 


When the issue was first 
raised the company said it 


profits are projected at Y9bn, The increase in operating [ wou j d meet tlae export and 


up by 4 per cent and net profits profits came from the cheap higfa technology commitments I S? S?" 
at Y4.8bn, up by 3 per cent yen, which made exports more n ^ssary for a 51 per cent * qTr ' 


profitable. 


foreign holding. Unilever then 


YASKAWA ELECTRIC Man- reductions in Japan's domestic 

1 Him. ner CAmnamr .Tanan’c owiien od per cent. 





more than in 1980-81 with ufactunng Company, Japan's discount rate, which improved 
quartz watch sales at 1.93m largest manufacturer of arc the company’s net financial 
units, up by 29.5 per cent Wdth welding robots and a leader in balance. 

the incursion of Hong Kong the new field of “Meehan- Net profits rose by only 2.9 


But in a 1979 review of the 
case, the Government decided 


me,, hir o q that insufficient of Hindustan 
Lever's sales fell within the 


commitment ■ categories. 


manufacturers into the digital tronics,” increased sales by 22 per cent to Y2.83bn as a result ljCver ." ^r 5 ie . W1 . “t® 

watch market, unit prices de- per cent to Y92bn (5395m) in 0 f a change in accounting commitment . categories. it 

dined sharply. As a result the the year to March 20 and oper- procedures. But the dividend ° > n *f re “ Unilever to r edu ce its 

value of Citizen's watch sales ating profits by 84 per cent to is still increased from Y4 to Y5. stalce to 40 per cent from the 


VONTOBEL EUROBOND INDICES 




14.5.76—100% 



PRICE INDEX 

11.5.82 

4.S.82 

AVERAGE YIELD 

11.5.82 

4.5.82 

DM Bonds 

96 86 

96 57 

DM Bonds 

8.927 

8 982 

HFL Bonds & Notes 

100. 24 

99.61 

HFL Bonds & Notes 

9.923 

10.053 

U.S. S Strt. Bands 

90.E8 

90.09 

U.S. S Strt. Bonds 

13.877 

14.003 

Can. Dollar Bonds 

91.76 

91.80 

Can. Dollar Bonds 

15.285 

15.266 


value erf Citizen's watch sales ating profits by 84 per cent 
declined by 2 per cent to Y116bn Y 6.441m, Charles Smith adds, 
to account for 88 per cent of a major factor in the sha 1 
the total. growth of sales was a 2.3 tim 

Wrist watch exports gained rise in the volume of arc wel 
by 5 peer cent to reach Y78.9bn ing robot sales, to a total 
and accounted for 60 per cent 825 units. Arc welding robe 
of turnover. Sales of office recently replaced spot weldii 


then 66 per cent 
Hindustan Lever appealed, 
saying that it was in the process 


Y6.44bn, Charles Smith adds. Yaskawa is forecasting a 7.7 
A major factor in the sharp per cent increase in sales for 
growth of sales was a 2.3 times the current year, to YlOObn - - . 

rise in the volume of arc weld- and a 25 per cent rise in operat- 0* changing its product range 
ing robot sales, to a total of ing profits, to YSbn. Arc welding ana steping up exports ana 
825 units. Arc welding robots robots will again provide the research and development. In 
recently replaced spot welding main growth thrust with sales meantime Unilever reduced 



Consumer 

Xnvst. 

IntmtL 

Eng. 

Metal 

Textile House. 

1981 
1st qtr. 

goods 

goods 

goods 

output 

mnfg. 

etc. 

starts* 

93-5 

88.4 

117.2 

8&2 

75.7 

■ 76.7 

10.9 

2nd qtr. 

93.1 

88.8 

118.0 

84.8 

78.7 

75.8 

14.1 

3rd qtr. 

93.5 

89.3 

118.7 

86.3 

77.3 

75.0 

14JZ 

4th qtr. 

93.5 

90.1 

12L3 

86.3 

82.6 

75.0 

n.s 

Sept 

93.0 

98 a 

120.0 

87.0 

79.0 

75.0 

15.4 

Oct 

95.0 

90.0 

124.9 

87.0 

86 J) 

7541 

13.4 

Nov 

93.0 

90.0 

12L0 

86.0 

83.0 

76.0 

14J 

Dec 

92.0 

90.0 

119.0 

86.0 

79.0 

74.0 

7.7 

1982 
1st qtr. 







14.7 

Jan 

9L9 

91.8 

119.0 

86.0 

79.0 

73.0 

11.4 

Feb 

92.0 

92.0 

119.0 

88.0 

84.0 

74.0 

15.6 

March 







17.1 


equipment rose by 42 per cent robots as the fastest growth rising to 1200 units. 


UNITED 

CENTRAL 


STATES BANKRUPTCY COURT 
DISTRICT OF CALIFORNIA 


WICKES COMPANIES. INC., 
a Delaware corporation; 

THE WICKES CORPORATION; 
a Delaware corporation; 
GAMBLE-SKOGMO. INC., 
a Delaware corporation 
and affiliates. 

Debtors. 


Cases Nos. LA-82-086S7-WL through LA-82-0M6S-WU 
LA -82-06755- WL and LA -82-06756- WU 
LA-82-06933- WL through LA-82-O603S-WL. eta. 


ORDBt AND NOTICE FOR 
MEETING OF CREDITORS 
OF AUTOMATIC STAYS. 
NOTICE PROCEDURE 
AND CAPTION OF PLEADINGS 


TO THE DEBTORS. THEIR CREDITORS, AND OTHER PARTIES IN INTEREST: 

Orders far relief under 11 U.5.C. chapter 11 having been entered an petitions filed by the Debtors 
listed on Exhibit A on April 24. 1982. it is ordered and notice is hereby given, diet: 

A meeting of creditors pursuant tp 11 U.S.C. Section 341 (a) and local Bankruptcy Rule X-1003 shall 
be held on Jane 3. 1382. at 1i).00 o'clock a.m.. at the Los Angeles Convention Center, 1201 South Figueroa 
Street. Los Angeles. California 90015. The United States Trustee will preside. 

The Debtors shall appear by Sanford C. SigoloN, Chref Executive Officer of Wickes Companies, Inc., 
at that time and place lor the purpose or being examined. 

You are further notified that; 

The meeting may be continued or adjourned from time to time by notice st the meeting, without 
further written notice to creditors. 

At the meeting the creditors may file their claims, examine the Debtors, and transact such other 
business as may properly come before the meeting. 

As the reeult of the filing a! the petition, certain acts end proceedings against the Debtors and their 
property are stayed as provided in the 11 U.S.C. Section 362 (a). 

The Debtors have filed a list of creditors pursuant to Local Bankruptcy Rule 1007. On or before 
September 1. 1962. the Debtors will file schedules of their Debts and Properties. Any creditor holding a 


claim which is not scheduled as disputed, contingent, or unliquidated as to amount may, but need not 
file s proof of claim unless the Court orders otherwise. Creditors whose claims are not scheduled or 
whose claims are scheduled as disputed, contingent or unliquidated as to amount and who desire to 
participate in the cases or share in any distribution must file their proofs of claim on or before e data 
to be net by later order of this Court an rba laat day for filing proof of claim. Any creditor who desires 
to rely on the schedules has the responsibility for determining that he ie accurately scheduled. All proofs 
of claim, not filed at tiro meeting of creditors, shall be filed ee follows: 


Deputy Clerk 

United States Bankruptcy Court 
Central District of California 
c/o The Wickes Companies 
1010 Second Avenue 
San Diego, California 92101 

The Debtors have filed an " Application lor Older Establishing Notice Procedure; and Order Thereon." 
requesting that notice ol certain sslea of property, of compromises, and of applications for compensation 
and reimbursement be given only as required' by Local Bankruptcy Rule 2002 («) end (I), and this Court 
hae granoed such Application. Therefore, any party in interest that desires _ Special Notice ot such 


matters shall file with the Court and serve on counsel for tiro Debtora-in-Poseession a Request for Special 
Notice, as required under Local Bankruptcy Rule 2002 (a). Such Requests shall be earned on counsel for 


Notice, as required under Local Bankruptcy Rula 2002 (a). Such Requests shall be served on counsel for 
the Debtors-in-Posseseion by mailing a copy thereof to: 


Counsel lor Wickes Companies, Inc. 

c/o Cathy Cooke 

Gi'baan, Dunn A Crutcher 

2029 Century Perk East 

Los Angeles, California 90067 

Objections relative to any matter the subject of such notices given by the Debtors-in-Poseeislon shall be 
in the form of a motion, shall be governed by Local Bankruptcy Rule 904 and shell be filed with the 
Court and served upon counsel for the debtors in possession (as designated in the notice) within tan 
days after service of auch notice. The Court has reserved the right to modify these provisions releting to 
Request for Special Notice an motion of any party in interest. The Bankruptcy Court Order provides that 
all pleadings filed in any or all of the Chapter 11 cases of any or ell.ol the Debtors shall use the caption 
and Cases Nos. set forth on this notifea. Further, the Order provides that all pleadings filed in any or all 
of the Chapter 11 cases shall either indicate that all of the Debtors are parties, to or ere effected by the 
pleadings or each pleading filed efroll indicate which of the Debtors are parties to or ere affected by 
the pleadinqs. 

Counsel have requested the Court ro hold a hearing to establish procedures for the psvmanr of inre^m 
cnm—nsMfon T*i"r he- rina will h 0 he'd before the Court in courtroom H. Unired Statss Courthouse. 
31? North Sorino Street Ins An*-»'as. California 30012, on June 24. 1B82. at 9.00 a.m. Counsel will 
tbit Court authorize the monthly payment of compensation to counsel at 75% of tHpir 
ryrm'-f've hnurfv rates. 

DhTEn; April 2A. 1982. 

BY ORDER OF THE UNITED STATES BANKRUPTCY COURT 
JACK L. WAGNER 
CLERK OF THE COURT 


NOTIFICATION RE PLEADINGS TO BE 
FILED AND REQUESTS FOR REPRODUCTION 
The Office of the Cferk of the Court has directed thee ■ 

(11 All pleadings be filed in triplicate: 

(2) All requests for photocopies of pleadings, other than requests for certified copies, be 
directed to the debtors in possession not to tiia Clerk's office. Such requests should be mailed to; ' 

Wickes Companies. Inc. 
c/o Cathy Cooks 
Gibs on Dunn & Crutcher 
2029 Century Park East 
Los Anqel.es, California 90067 

Advance payment oF 50.50 per page will be required and should be included with any requests. 


WICKES ENTITIES FILING CHAPTER 11 PETITIONS 
April Z 4 . IWSZ 

1. Gamble Realty. Inc., a Nevada corporation 6. Red Owl Stores. Ine, 


2. Wickes Companies. Inc., a Delaware corporation 

3. The Wickes Corporation, a Delaware corporation 

4. Gamble-Skogmo. Inc., a Delaware corporation 

5. Woman's World Shops, Inc., a Delaware 
corporation 


6. Red Owl Stores. Ine., a Delaware corporation 

7. Snyder's Drug Stores, Inc., a Minnesota 
corporation 

8. Aldens. Inc., an Illinois corporation 

9. N. Kaufman's Inc., a Pennsylvania corporation 


April 26. 1982 


la Wlckaa Credit Corporation, a Delaware 
corporation 


11. Gamble Credit Corporation, a Nevada 
corporation 


April 28, 1982 


fa. Howard Brothers Discount Ine.. • Louisiana 
corporation 

13. Howard Brothers of Phenfx City, an Alabama 
corporation 


14. Southland Wholesale Distributors. Inc., s 
Louisiana corporation 


April 30. 1992 

15. Lae L. Woodard, Inc., a Delaware corporation 18. L 
IB. Lea in end Company, Inc., an Indiana c 

corporation 19 , l 

17. Loath Furniture Company, an Illinois corporation 2 d’ R 


18. Loath Furniture Company, a Michigan 
corporation 

19. Leath Realty Co., a Delaware corporation 

20. Roy F. Brown interiors, a California corporation 


THE WICKES CORPORATION 
Divisions, Trade or Assumed Names 
*Yorfcrowna Kitchens— See below Wickes Recree 

Yorfcrowne Division— See below Woodard, a div 

rorkuwne Central Pennsylvania Distributors— The United Sta 

See below Rmiriarc rm 


Michigan Bean Company 
Wickes Lumber 
Wickes Home Division 
Wickss Building Division 
Wickes Agriculture Division 
The Attitude 
Woodard Furniture 
“Wickes Machine Tool — See below 
Wickes Lumber and Building Supplies 
Wickes Forest Industries 
Wickes Engineered Materials 
Saginaw Machine & Tool Company 
Kux Machine 
Farm aster Products Co. 

Behlen Manufacturing Company 
Sequoia Forest Industries Co. 

Colonial Products Company 
Oregon Pacific Industries 
King’s River Products Co, 

California Reel Co. 

Moriarity Buildings 
Continental Moulding Co. 


Wickes Recreational Vehicles 
Woodard, a division of Wickes 
The United States Graphite Company 
Builders Emporium 
Big Acre 

W. E. H. Industries 
Wickes Component Mlg, 

Wickes Wood Products 
Celebrity Homes 
Wickes -Albion 
Home Lumbar 
Gormley Bean 
M. J. Bean 
Ace Travel Trailer 
Ernmort Pdts. Co. 

Idaho Western Miff 
Idapine Mills Co. 

Builders Emporium Reel Estate Holding Company 

Wickes Lumber - Tucson 

Wickes Lumber Centers 

Wicket Midway Lumber 

Oracle Road Lumber 

Jiffy Dor 

Wickes Jiffy Dor 

Wickes Oracle Roed Lumber 

Builders Emporium (West), Inc. 


“The entities Indicated above were previously divisions. 

They are now separate corporations and ere not debtors in these proceedings. They ere lifted only w 
comply with the Local Bankruptcy Rules. 


Gambles House of Fabrics 
J. M. McDonald Division 
Maxwell Division 
Leath -Maxwell Division 
The Parie Company 
Skogmo Stores DivisiotT 
Tempo-Buekeye Stores Division) 
Buckeye Stores 


GAMBLE-SKOGMO. INC. 
Divisions, Trade or Assumed Names 
Tempo Stores 
Rasco-Tempo Division 
Mode O'Day 
Raseo Stores 
Gambles Stores Division 
House of Fabrics 
Bsen Textiles 
Eicon Mercantile 

EXHIBIT X 


EM CO Fabrics 
Embassy Fabrics 
Tempo Oepaitment Stores 
House of Fabrics, a division of 
Gamble-Skogmo, Inc* 
Gamble Stores 
J. M. McDonald Co* 

Toy World 


Debt problems shake six 
big South Korean groups 


the meantime Unilever reduced 
its stake to 51 per cent 
Only a few other foreign 
companies have the status now 


EXTERNAL TRADE — Indices of export and import volume) 
(1975=100); visible balance; current balance (£m); oil balance 
(£m); terms of trade (1975=100); exchange reserves. 

Export Import Visible Current OH Terms Resv. 
volume volume balance balance balance trade US? bn* 

1980 


BY ANN CHARTERS IN SEOUL 


A MAJOR upheaval in South 
Korea’s unofficial money mar- 


Won 262.44m (US$366m) which 
were being held as collateral on 


ket, the curb market, has loan. 

strained the capacity of six The usual practice Is for the 


Korean companies 


lenders to hold the notes but 


include Siemens (with a 
German parent). Union Carbide 
(U.S.), and Guest, Keen and 
Williams, and General Electric 
Company (both UK). 

In Hindustan Lever’s case the j*ot 
G overnment has stipulated that d gc 
at least 10 per cent of its turn- 
over must be exports of its own jan 
products. Feb 

The company is due to report March 
Its 1981 results shortly. It is April 


4th qtr. 

1981 
2nd qtr. 

126.4 

111.4 

+1,265 

+2,114 

+222 

105 J 

27.90 







26.73 

4th qtr. 

1324 

126.4 

+552 

+1.470 

+698 

99-8 

23.35 

Feb 

118.9 

107.8 

+334 

+767 

+230 

mi 

28 A3 

March 


1023 





2821 

April 


104.7 





28.07 

Sept 

1294 

129.2 

+ 58 

+191 

+291 

99.6 

23.70 

Oct 

132.4 

122.2 

+296 

+602 

+ 74 

98.9 

2322 

Not 

134.4 

ms 

79 

+227 

+205 

100.1 

23.46 

Dee 

139.6 

120.6 

+335 

+641 

+419 

100.4 

2325 

1982 








Jan 

119.5 

123.4 

^•132 

+348 

+168 

10L2 

2323 


meet their debt obligations and they were unexpectedly pre» helieved, though, toat its exports 

_ J i j a- _ f J r • ' ^ * _ - . waU arai* TJe ftHAwi lric4 


forced the presidents of two of 
the five Korean commercial 
banks, the Cho-Heung Bank and 
the Commercial Bank of Korea, 
to resign. 


sented for payment which 
triggered the companies’ finan- 
cial crisis. 


The problems began to sur- 
face a week ago when a couple. 


As a result of the debt pres- Mr Lee Choi-Hi and his wife 


sures, Kong Yung Construction 
Company, which has contracts 
in Saudi Arabia, Kuwait and 
Iraq, has been put under court 


Chang Yong-Ja, were arrested 
and charged with smuggling 
$400,000 abroad in violation of 


were wen over Rs 600m last 
year, an increase <of about 60 
per cent on 1980 when total 
sales were Rs 4.044m ($440m). 

Although the exports 
accounted for 13.4 per cent of 
turnover in 19S0 and a higher 
percentage last year, about one- 
third of the exports are attribut- 
able to the company’s trading 


Trade figures for March-August 1981 not available because of 
Civil Service dispute. . 


FINANCIAL — Money supply Ml and sterling M3, bank advances 
in sterling to the private sector (three months' growth at annuid 
rate); domestic credit expansion (£m); building societies’ net 
inflow; HP. new credit; ail seasonally adjusted. Minimum 
lending rate (end period). 

Bank 


foreign exchange laws. Chang ^ ause operation in which it rep- 


supemsion *nd its institutional Yong j a waS 'also charged with SSSh mrilStie c<2- 


debt frozen. 


having 


The Korea Stock Exchange $400,000 and Y8m ($35,000) at 
had earlier suspended dealings the time of her arrest 


in the Shares of Kong Yung and 
the Hfisdn Steel Company wMch 
were affected by the loan 
problems. 

Other companies whose pro- 
misor? notes in the curb market 
were presented for payment in 
breach of a gentlemen’s agree- 
ment are Life Construction 
Company, Samick Corporation, 
Hai-Tai Confectionery Company 


The investigation of the 
distribution of funds obtained 


panies. 

35,000) at | About 50 per cent of the com- 
pany’s sales come from its tra- 


and detergents. Diversification 


when the promissory notes were over the last five years or so has 


cashed is still in progress. 

It is common practice in the 
curb market for companies to 
issue promissory notes worth 
double the amount Borrowed 
with the understanding that 
the notes are held pending re- 


and Taeyang Metal Industrial Payment of the loan. 


Company, 


The presidents who resigned 


Ministry of Finance officials were Mr tim Jae-Soo of Cho- 
indicated yesterday that mea- Heung Bank and Mr Kong Duk- 


sures would be taken to aid 
companies affected. The six 


Jong of the Commercial Bank 
of Korea. Both institutions were 


companies bad issued pro mis- main banks for the companies 
sory notes apparently totalling involved. 


taken it into chemicals (roughly 
20 per cent of sales) and food 
products (a further 20 per cent) 
with die balance being exports 
of a wide range of Items. , X81 . , 

The company has made major | Jan 
breakthroughs on soaps and 
detergents, which it says help 
justify its status as a high tech- 
nology company. 

It spends about 0.8 per cent 
to 0.9 per cent of its net sales 
on research and development, 
making it the largest private 
sector research establishment in 
the country. 



Ml 

M3 

advances DCB 

BS 

HP 

MLB 

tqjn 

% 

% 

% £m 

inflow lending 

% 

1st qtr, 

6.8 

82 

12.4 +1208 

1,081 

1284 

12 

2nd qtr. 

23.1 

172 

62 +4250 

1403 

1236 

12 

3rd qtr. 

8.1 

182 

29.7 +5238 

868 

2,019 


4ttiqtr. 



+2,173 

422 

MSB 


July 

142 

172 

192 +2240 ' 

290 

658 

12 

Aug 

02 

146 

35.4 +1240 

244 

659 

w. 

Sept 

9.7 

22.8 

343 +2*458 

334 

706 

— 

Oct 

- 4.7 • 

202 

' 240 +1252 

154 

681 

_ 

Not 

7J$ 

172 

20.4 + 445 

65 * 

642 

— 

Dec 



+ 176 

203 

657 

_ 

1982 

. 






1st qtr. 






2401 - 


Jan 



+1238 

356 

654 


Feb 



+ .846 

347 

691 


Mardi 





756 



INFLATION— Indices of earnings (Jan 1976=100); basic 
materials and fuels, wholesale prices of manufectured products 
(1975=100); retail . prices, and food prices (1974=100); FT 
commodity index (July 1952=100); trade weighted value of 
sterling (1975=100). 


Record year at 
South African 
Breweries 


Weekly net asset value 


By Thomas Sparks 
In Johannesburg 


SOUTH. AFRICAN Breweries 
the country’s monopoly brewer 
’vhlrh his divers; .s.ro.’Ay 
hi to 1: c y* ! r ?.> r . :-.n a 
r?U:!Mits «nmed r- ' profit? 
in taa y;*ar et’de- M.-rch 3: 
.932. Management does no? 
however expect the current 
year to result in a repeat of ' 
the relatively strong growth , 
rates achieved in the recent 
past 

In the year just ended opera- 
tang profit before tax and 
interest rose by 30.6 per cent , 
to R311:9m (8296m) from 

R239m in the proceeding year. 
Turnover rose by 28.7 per cent 
to R3.06bn from R2.3Sbn. Beer 
sales volume increased by 21 , 
per cent. I 

At the interim stage manage- 
ment warned that growth in the 
second half would be lower 
than in the first and this proved 
to he the case as economic 
activity slowed down. However 
Mr Dick Goff, the managing 
director, feels that the group’s 
performance is satisfactory. 
The growth in operating profit 
outpaced that of turnover 
which in turn advanced at a 
faster rate than the 20 per amt 
estimated monetary growth in 
private consumption expendi- 
ture. 

The pattern of spending ap- 
peared to be shifting. In the 
year ended March 31, 1981, the 
beverages division contributed 
'47 per cent of attributable after 
tax profit In the year just com- 
pleted its contribution was 55 
per cent and Mr Goff expects 
this percentage level to be 
maintained 

The group has extended its 
retail interest with the acquisi- 
tion of the fashion retail chain 
Edgars and the shoe retail 
chain Scores jost before the end 
of the financial year. These 
acquisitions have little effect 
on the group’s earnings. They 
both involve the issue of new 
South African Brewery shares 
this year but this is not ex- 
pected to result in any dilution 
in earnings per share. 

A total dividend of 34 cents 
has been declared from earn- 
ings of 75.1 cents a share. In 
the previous year earnings were 
54.3 cents a share and the divi- 
dend 27 cento. Management 
warned that little or no growth 
in economic activity is likely 
this year, that interest rates 
will remain high and that 
higher tax rates have to be 
contended with. 


Tokyo Pacific Holdings (Seaboard) N.V. 

on May 10th 1982, $U.S.61.75 
Listed on the Amsterdam Stock Exchange 


Information: Pierson, Hcddringfi Pierson N.VL, 

Herengracht214,1016BS Amsterdam. 



Earn- 

Basic 

WhsaJe. 



FT* 



' ings* 

• matis.* 

nmfg.* 

RFI* 

Foods* comity. Strig. 

1981 

1st qtr. 

1952 

2152 

2122 

280.4 

268.7 

26126 

101.4 

2nd qtr. 

2022 

2252 

219.4 

2940 

2772 

245.07 

972 

3rd qtr. 

2092 

2352 

2241 

2994 

2782 

26023 

90.6 

4th qtr. . 

. 2146 

2372 

2292 

3002 

2852 

248.97 

89.7 

Oct 

2122 

2382 

227.8 

303.7 

282.7 

259.12 

882 

Nov 

2143 

2 362 

229.4 

3062 

28 52 

245.79 

90.1 

Dec 

2174 

2362 

230.4 

3082 

2882 

24827 

902 

1982 

1st qtr. 


238.0 

2344 

311.6 

297.7 

242.40 

9L1 

Jan 

2141 

2382 

2322 

310.6 

2964 

25224 

91.1 

Feb • 

216.8 

2392 

2346 

310.7 

2972 

241,77 

912 

March 


2352 

2352 

313.4 

2992 

242.40 

902 

April 


238.4 

2372 



24624 

90.0 


* Not seasonally adjusted. 


This advertisement complies with the requirements of ike Council of The Stack Exchange. 
It does not amsttiute an offer of or imitation to subscribe for or purchase any -securities. 



U.S. $100,000,000 
Manufacturers Hanover Overseas 


Gncorparated in 


13f% Guaranteed Notes due May 15, 1987 ... 

With Warrants to Purchase U.S. $200(000,000 14£% Guaranteed Notes 

doe May 15, 1989 


The 1987 Notes and die 1989 Notes are Unconditionally Guaranteed by 

Manufacturers Hanover Corporation 


(incorporated inDelaiBore) 


Goldman Sachs Inte rnational Cprpt 
Banque Nationale de Paris 
Credit Suisse First Boston Limital 
Merrill Lynch International & Co. 
Salomon Brothers International 


ManufacturenHanoverlimitol 


MorganStanley International 
Union Bank of Switzerland (Secmitiesj limited 


The 1987 and tie 1989 Notes, in denomin ati o ns of U.S. $1,000 and U.S. $10,000, with an issue pAwnf 
interest, have bean admitted to the Official List by the Council of The Stock Exchange, subject to the issue o£ the temporary 
Global Notes. Interest to payable annuaflym arrears on May 1& commencing on May is 1983. The Warranto have bS 
Ad m i t ted to tha Offi ciall j u t by tha Cmmrilnl: Thefit ntrfr fanhongn . Huhfortfc to thoiaenQ nTri,n flinhnl Wawanf — 


business hours on any weekday (Saturdays excepted) op to and Indudingidhy 27, 2982 fiom the-taokw to the issue; 

Cazenmre & Co- 

IZTokenhoiwYu^ 

May 33, 1982 London EC2R7AN 






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financial . Times Thursday May 13 19S2 

•4*5. intl: Companies & finance 


United Plantations lays a path 


THE BED late last month for 
United Plantations, the Danish- 
conirolJed Malaysian plantations 
sroup. by FIMA, the Malaysian 
Govemnient-qwned, aaro-hasod 
industrial group, placing -a 
market value of 000m ringgit 
(US&2fiomj on U.P.. offers 
pointers -to other foreiijn-ownpd 
plantations here which have yet 
io he restructured under 
Malaysia's New Economic 
Policy. 

The • UP exercise involved 
delicate negotiations over six 
months. To maintain secrecy, 
the codename ” Tebu ” or 
“sugarcane," was given it. 

The terms offered for UP 
were about the best afforded a 
foreign plantation so far. The 
cordiality in which the discus- 
rions were conducted contrasted 
sharply with the acrimonious 
tone of the battles of the past 
year for the takeover or such 
British groups as Dunlop Estates 
and Guthrie Corporation. 

The New Economic Policy 
requires foreign companies, as 
a general rule, to reduce their 
slakes to 30 per cent by 1990. 
The broader aim is to obtain a 
corporate ownership structure 
of 30 per cent foreign. 30 per 
cent Malay tor Bumiputra). and 
40 per cent, local non-Malay by 
1990. 

Two developments are in- 
volved in the United Plantations 
dual. First, FIMA Is making a 
general offer for UP shares at 
6 ringgit cash each Secondly. 
UP is finalising negotiations to 
acqurre 30.000 acres of jungle 
from ihe Perak State Govern- 
ment for its expansion. When 
the exercise is over. United 
Plantations will present this 
picture: — 

• Bumiputra-owned with all 
the rax and political advantages 
attached to that status, bur with 
continuing Danish management 
for a long while yet; 

• With an extra 30,000 acres, 
the group would offer to emerge 
In the next decade as one of 
Malaysia's dominant oil palm 
and “cocoa cultivators, with 
nearly 70,000 acres of high 
yield crops on prime Jana; 

• It would also be an integrated 
vegetable oil group, involved 
in the cultivation, processing, 
manufacturing and marketing 
of vegetables oils, having sub- 
stantial links in Australia and 
Europe. 

The new equity structure 
remains to be seen, but Data 
Bek-Nielscn, the UP chairman 
and managing director, thinks 
that FIMA should end up with 
just over 50 per cent. Danish 
shareholders, including board 
members are likely to retain 
about 35 per cent, with the rest 


United Plantations, with 
39.000 acres. Is not one of the 
biggest Malaysian plantations 
companies, hat is, neverthe- 
less, significant to the Malay- 
sian and Danish economies. 
It Is listed la both countries. 

la 1 90S, a 47-year-old 
Danish businessman. am* 
Westonfaolz, having made his 
fortune in Thailand, opened 
a rubber estate at Jemdarata 
in Lower Perak. Over the 
years, more estates were 
carved out In tower Perak, 
and then were merged boo 
United Plantations. - 

Dato Sek-Sl&lsen took over 
as managing director in 1972, 
at the age of 56, and became 
the chairman as well in 1979. 
He bad been with UP for 31 
years, joining it as an 
engineer shortly after gradu- 
ating from the Copenhagen 
Engineering College, 

“ ft is through discipline 
and productivity that UP t* 
what it is today. We are one 
of the best -managed planta- 
tions. We pay the highest 
wages in the industry. Our 
workers have an excellent 
provident fund. We started 
the first old folks’ home in one 


in the hands of other Malaysians. 

Fima aiready holds 2.5 per 
cent of UP. The chairman is 
to be provided by FIMA, but 
Dato Bek is to remain as chief 
executive. 

Excluding United Plantations' 
non-plantation interests, worth 
some 60m ringgits, from the 
fiQOni valuation put on UP by 
The bid leaves the value attach- 
ing to t-P's plantations at well 
over 13.000 ringgit (SU.S.5.G00) 
per acre. This is twice the 
amount paid for estates acquired 
by Malaysion groups during the 
past year. 

The high price is. however, 
a reflection of high returns. In 
1980, for example. UP reported 
after-tax profit of 870 ringgit 
per mature acre, compared with 
the 391 ringgit at Dunlop 
Estates. 294 ringgit at Guthrie 
Rope!. 501 ringgit at Kuala 
Lumpur Kepong. and 611 
ringgit at Consolidated Planta- 
tions. the subsidiary* of Sime 
Darby. 

Unlike other groups with a 
rubber and oil palm mix of one 
kind or another, UP is most 
heavily involved in oil palm, 
and has a growing acreage 
under cocoa and high yield coco- 
nuts. Rubber is the lowest pay- 
ing of the four crops. 

Several groups had been 
eyeing United Plantations for a 
long time, and indeed some 
offered better money a share 


of onr estates, where old 
employees are looked after. 
Onr medical and housing 
facilities are among the best," 
he says. 

Apart from the estates. l!P 
has a number of subsidiaries 
and associates dealing with 
agricultural advisory services, 
palm off bulking and trans- 
portation. 

The biggest investment is a 
50 per cent share in Unltata, 
with Tala, the Indian Indus- 
trial group. The venture Is 
one of Malaysia's biggest and 
most successful palm oil 
refiners but, as others, has 
suffered from the world reces- 
sion. 

UP*s Danish ownership Is 
spread over L200 share- 
holders, the big gest among 
them being: Jemdarata Provi- 
dent Fund (9.2 per rent), 
Honggroup Nominees (7.G per 
cent), the firm family (7.5), 
the Andersen family (3) and 
Danish directors personally 
(4). 

Malaysian shareholders 
Include FIMA, Tabling Hajl, 
River view Estates, KPM 
Modal and Rolhputra, with 
a total of 8 per cent. 


than did FIMA, though mot in 
all cases with a view to making 
a general bid. 

Clcnting, the casino, hotel and 
plantation group, rnnlrnlleri by 
the Lint family, offered seven 
ringgit per share, bui wanted, 
in tandem with another group, 
only 35 per eem of the equity. 

After the Dunlop Estates 
controversy, where the purchase 
by the Chinese-owned Multi- 
Purpose Holdings was attacked 
by the Malay leadership, the 
UJP. Board saw the difficulties 
In offering control to another 
Chinese group. 

The takeover of Dunlop 
Estates and that of Guthrie 
Corporation last year raised 
high controversy in Kuala 
Lumpur and London. Multi- 
Purpose Holdings, the invest- 
ment arm of ilte Malavsian- 
Chinese Association bought the 
51 per cent slake in Dunlop 
Estates held by Dunlop Hold- 
ings of the UK for 252m ringgit 
(US$1 10m). This satisfied one 
point of the NEP objectives. In 
buying nut a foreign share- 
holder. but aroused bitterness 
between the Malaysian-Uhincse 
and the Bumiputras over the 
broad application of the NEP. 

In the case of Guthrie, a UK- 
based concern before its take- 
over by Permodalan, the 
Malaysian Government invest- 
ment agency.- disquiet arose 


from its being accomplished by 
a dawn raid on Guthrie shares 
in London, and was quickly 
followed hy a revision of 
London take-over rules. 

Dato Bek ic enthusiastic 
about HP's future after the 
changes. 

Tite 30,000 acres of jungle it 
plans to acquire are next door 
to its own Bemam estates in 
Lower Perak. The land Is fiat 
and ideal for coco.: and *~.d 
palm. "Just imagine having a 
single 40.0(H) acre estate and 
the economies of -vale. This is 
unheard of in South East Asia." 
he says. 

UP Is cash rich, and it 
should be able to develop the 
land lnrgclv from its own funds. 
Discussions are going on on 
the purchase of the land, so that 
no price is fixed, hut the 
general going rate for jungle 
land for agriculture is currently 
around l.Wrt ringgit an acre, 
making a price on this hails r.f 
30in ringgit (USSl.lmi. Because 
it Is jungle development in- 
volved, the cos! could under the 
tax laws, be written niT in two 
years. 

UniTert Plantations is n!s-n 
expanding overseas, as well as 
getting into more rophisticatel 
activities in the vegetable oils 
industry. Tt fans taken up a :u i 
per cent stake in a venture in 
Australia to cultivate -mnfiov.er 
and cotton over 53,oof> acres »n 
Queensland, in partnership 
with Internal 10ml Plantations 
and Finance flPF). of the 
Bahamas, ant! Aarhus Otie- 
rnbrik. of Denmark, the initial 
development costs of which are 
about A$5m fUS$5.3nt). 

It is also investing £4m in 
a 20 per cent stake in a com- 
pany to build a plant nn the 
Hull waterfront, in England, 
together wuh Aarhus Oliefahrik. 
supplying technology, and IPF. 
for the extraction of high value 
by-products of palm oil and 
cocoa butter fats. 

The United Plantations take- 
over means ih.ti there nrp only 
four large foreign plantation 
groups which have yet to he 
restructured. 

One, Soctin. the French- 
Belgium group, with 70.00P 
acres, is advanced in its plan* 
to meet the NEP. 

The other three are the 
British-owned Harrisons and 
Crosfiofd group, with 20n.0fin 
acres, the offshoot of Unilever, 
(the Anglo-Dutch group), with 
50.000 acres, and the operations 
of the Uniroyal group of the 
U.S., with some 30.000 acres. 

Wong Sulong 




Ibis announcement appeals as a matter of record onfti 


Can. $40,000,000 

Simpsons- Sears Acceptance Company Limited 
16%% Se cured Debentures SeriesXdue April 28,1989 
Unconditionally and irrevocably guaranteed by 

Simpsons-Sears limited 

Issue Price 100% 


Bank Brussel Lambert N.V. 

Amro International limited 
Credit Suisse First Boston limited 
Hambros Bank limited 


Wfood Gundy Limited 

Soctetg Generate de Banque S. A 
Banque Generate du Luxembourg SA. 
ted DeutscheBank Aktiengesellsdhaft 

Merrill Lynch International & Go. 

Sactef£ Generate 


Orion Royal Bank limited Soaete Generate 

grass panic Corpo ration International Urmte A Dean Witter Reynolds Overseas Ltd. 


Algemene Bank Nederland N.V. 

Bank Heusser & Cie AG 

Banque Internationale a Luxembourg SA. 

Banque Warms Baring Brother s & Co, 


BancadelGottardo 
Bank Leu MemahonalLld. 


H Albert deBary&Co.NV. 


BrasachPinsdioF SchoeUer OBC Calsse Centrals ties Banque* Fopmaues 

anfeUa^BS^KrediOcasse Gommenzto k Cbmpognie de Banque et dlnveatissetaenta [Underwriters) SA 

Continental Illinois - County Bank CM^CannneCdalde Prance Qrfdit General S A deBanquo 

Credit Ind^triel d'Akace et de Lorraine SA Dat^EnropeNV. vu.uk I Lina H l 1 . util. 

Deutsche Girozeritrale ^85*^ Dominion Securities.^ 

European Banking Company GennesenschalfflcheZenhnibankAG 

Bask tier OstetTeachischaa Spariassen ftaJcIsbonkNW. [Overseas] HessischeLmjdesbahk 


BayerischeVeretosbank Berliner Hi 

AltiaasmQaciiafi - 

raiy a* Centrals das Banques Populaires 


B ank GutzwiHer, Kurz, B ungene r [Overseas) 

Limited 

Bankbaus Hermann Lamps 
KnmnuuKi ilSCwUhchnl l 

; Banque de l*Union Europeenne 

Bayerische Hypotheken- tmd Wechsel-Bank 

AkUpngeselkchan 

Berliner Handels-und Frankfurter Bank 


Ghflg p Manhattan 
Hastes! 


Gnmpg gmB de Banque et dlnveatissefeenls [Underwriters) SA 


Deutsche Girozentrale 
-Dnmgtha K'wimuin^hank- 


DGBank 

DcUUchO CcsOHODKluftllMBk 


Dresdner&nk tur °P eflnl Sffl^ 

.micugo gBadni t ■ 

Guozentrale und Bank der OrtemdchiscbeaSparimssett 


HU Samuel ^C6- 

Limited 


AidKns«elischa{( 

Greenshields 

incaqxgllad 


European Ban km g Company Genoas 

aischenSparkassen HandelsbankNW. [Overseas] 


Ijjg The Hongkong Bank Group JapanlhtemaUonalBaiik Limited 

F.tsnlAnschotBanldaisNV. ; I^lmian Esthers Knlml^blnternah 

l^nDj^tomafion^ Merck, ESnck& Go. MidlandDoherty 

N^BriflndMCrfitSfiibankNV. The Nikko Securities Co, (Europe) Ltd. 


LTCBintfiniflttonal . 

Limited 

Mitsubishi Bank (Europe] SA 

?^nddOTische Landedank 

Oiomizate , 

SaLOppenhsini jr.a Ob, 
pafialdMackayKoss 

UteUmt . . . 


jlHetttySd^’W&gg&C®' ' SkandinavM 
So^^SfiquflnaisadeBaDflua UmmBankrfSw 
■%rrinMnri\ftstbank S.GWWjmg&CaLld. 


Nederiandse CredielbaiikNy, 

Nordic Bank 

United 

Kerson,He!driiiiH & Hereon NV1 B 

RaMufMernationalENZ) 

T.lmllwst 

Sanwa Bank (Underwrilers) .SdmeHar&Ca 

iioited 

_ skandinaviskaEnskildaBanken 


Osterreidusche Landerbank A.G 
PoterbroeckVan Campenhout St Ge $.05. 
Richardson Securilics of Canada (U.K.) 

{jmilDtl 


Union Bank of Switzerland (SecuritieE) 

ShdnBgSCaUti*””* 1 Weg M enbsn k 


3, SchrodeLMQnchmeyer.Heagsi k Co. 

N.V. Slavenburg's Bank 
Verband Schweizerischer Kantonalbanken 
Zentralspariosse und Konunerziolbaiik 


April 1S82 


SECuariY 

"The criji-r-rictin.- .“rr^.don!jon it: *>.5 cor cJ-jc* cf 
the C.nw j‘ Pi.-piir. - Ttu/ ii ir.£ -.irruicj' v ■-« 
capita ujlj>jr.i3'.J a.-tln.'.ha'aifi?. The .-Si sice 

□f iT.cMfT.wnt ii St'S i-.’-rai’jor: si tfet nw-rir.*. 
V.'iinaiit urdut; «; :• ir»: on our "-c.-: 

record in 'iii*. iwpw. cli s,i«re 
V.'f: hr,2 [v*:j,n+ri!r„ri Mw.:, rc‘£f;j-r-.: :r.u 
ajcb as J msd.ii u! i-iCrsAiTt; the c :e 
Trust. This «luv th>- Trull cirr.a-. be c-’-^hr cts ji 
a rel'nisnnr.g Dirtd «.r.cno>:d !iina ra," da-? ar.d 
new ones arc uncbtj-jjbie. Tr.e Trust is unique in 
thi respect and its vAie has cradusliy duA-nad 
cn investors and onciyits alike." 

TAXATION 

■You wil! be aware tha in JuV, 1 9S0. Lhe 
Australian Treasurer reteaseu a siXcnxnt :! k! 
certatn r,pcs ol proper", • UoitS’-vcub ce subject 
to cc-n:pJii;j »i.. Le-trt'jtwr: totniseiftct was 
adopted by Federal Forharcnt in ft:-, ember. 

1981. A submission w n made la ihe 


Cem-r i£*i;r.e- or Tivaiion, seeWng confirmation 
tnat ire Kr.er.dir.j ; rosiKons in the tex stetus of 
c-.ti • 7-CCr.T,- u-s:s *:i:rd net apply rot! :e 
Cerer:. Pror.snv Trust. !!>-■ Commissioner has 
r-* cjr.isea ma, on d.e infonninion 
subbLed. it can be ecpccted that Uie net income 
ci ;S- Ger.'-L's! Propeny Truss wdl net be subject to 
SXSL-n unci- tht4r ceW provisions." 

CEEDAMENDiVtENTS 


72 73 74 75 76 77 78 79 80 SI 82 
“INCREASED RETORNS HAVE BEEN 
CAPITALISED IN THE VALUE OF THE 
CINDERLYING PROPERTIES. THE ASSET 
BACKING IS EXPECTED TO BE 
APPROXIMATELY S2.00 PER UNIT AT THE 

END OF THIS YEAR (SUBJECT TO 

CURRENT RENTAL TRENDS AND 
PROPERTY YIELDS CONTINUlNG). w 

IDEAL INVESTMENT 
"Compared with the Consumer Pnce Index, 
General Property Trust has kept ahead of inflation 
by a wide margin throughout almost all its 
existence. This is true against alternative forms 
or publtdy traded securities. I have no hesitation 
in concluding that the Trust is an ideal 
investment for those who cannot afford to 
gamble with their savings. Any investment 
portfolio should be partally invested in General 

le. rvrvwirla s irsRrffruTrv’fATinn 


ga^arrii eg ed ; y 




ln.axnpUJmcewi!h the Secu riti es 
Industry Act. 1950, theb-tanager 
pistes (hat it holds 593.763 units fit 
General Property Trust 


This announcement appears as a matter of record oniy. 



.An 


US$60,000,000 • 

Medium-Term Multicurrency Loan 

partly guaranteed by 

THE STATE OF SPAIN 

Lead-Managed by 

ALLIED IRISH BANKS LIMITED, Brussels 
- BANQUE EUROPEENNE DE CREDIT (BEG) 

BANQUE EUROPEENNE DE TOKYO 

LANDESBANK RHEINLAND-PFALZ UND SAAR INTERNATIONAL SJL, Luxemburg 
CAJA DE AKORROS DE ZARAGOZA, ARAG6N Y RIOJA n CAZAR** 

Managed by 

UtAB SANK 1KVESTUENT COMPANY LIMITED 
CAISSEGENERALE D’EPARGKE etde retraite -algemene spaar- en lijfrentekas 
PARTNERSHIP PACIFIC BANK N.V. 

SECURITY PACIFIC BANK 

THE BANK OF YOKOHAMA, LTD. 

Provided by 

ALLIED IRISH ZXKl S LIUITEB, Grussrt^ BANQUE EUROPEENNE DE CREDIT (BEC) 

BAM9UE EUROPEENNE DE TCKVO LANDESBANK RKEINLAND-PFALZ UND SAAR INTERNATIONAL S JL, Luxemburg 
ARAB CAXK LIMITED CA.SSE G3?£^tALE B^PARQHE ET US RETRArTE - ALGEMENE SPAAR- EN LIJFRENTEKAS 
PARTNERSHIP PACIFIC 3A WIS HX. SECURITY PACIFIC SANK THE BANK OF YOKOHAMA, LTD. 

CAJA DE aHCRRCS DE ZARAGOZA, ARACCNY RIOJA -CAZAR" 

DEN KORSKE CREOTTBANSt (LUXEMBOURG) SJh. 6STERREICHISCHE VOLKSBANKENAKTIENGESELLSCHAFT 
ALLGEMEllSESPARKASSE SANK OPPENHEIM PIERSON INTERNATIONAL SJL 
CA1XADEAFCRROSDE GALICIA CAIXA D>£5TALYIS DE CATALUNYA . . 

CASTA D’ESTALVIS DE SABADELL CAJA IMS AHORROS DE JEREZ DE LA FRONTERA 
CAJA DE AHORR05 Y MONTE DE PIEDAD DE LA CIUDAD DE VITORIA CAJA PROVINCIAL DE AHORROS DE ALAVA 

SPAREKASSEN SAS. Cayman Islands Branch 


BANQUE EUROPEENNE DE CREDIT (BEC) 


' -oi 

f BEC 


April 1982 










34 


NEW YORK 


ACF Industries.-/ 

AMF- , 

XM Inti ........ 

— ■ 

asa- ; 

AVX Carp 

Abbot Labs 

Acme Clave — 

Adobe OH ft Gan. i 
Advanced Micro. 

Aetna Ufa ft Gas 
Abrnanson 'H.F.;! 
Air Prod ft Cham: 

Afczona 

Albany Int. — ! 

Albarto-Culv. 

Albertson's 

AkumAluminlumJ 
AJbo standard....) 
Alexander ft Al... 
Aiegtasny Inti—; 

Allied Carp > 

Allied Stores . — ; 
Allle-Chalmoro 
Alpha Portd ] 


Alcoa , 

Antal. Sugar....... i 

A max ■ 

Amdahl Corp 

Amerada Hess. ... 

Am. Airlines 

Am. Brands. 

Am. Broadcast'gl 

Am. Can 

Am. Cyanamld ..' 
Am. Elect. Powr.' 

Am. Express 

Am. Can. Insnoe.. 
Am. Holst ft Dk— j 
Am. Home Prod.. 
Am. Hosp. Suppy 
Am. Madloal Inti 1 

Am. Motors ' 

Am. Nat. Ranees' 

A m.Petflna 

A m.Qutsar Pet.., 


Am. Standard....' 

Am. Stores , 

Am. Tel. ft Tali... 
Ametek Ine — 

Amfao 

AMP 

Arnstar 

Amstead Inds 

Anehor Hooks...,! 
Anheuser-Busch 1 
Archer Daniels...' 
Armco.. 


Armstrong CK... 

Aeamera Oil 

Asaroo 

Ashland Oil ..... 
Asad □ Goods..., 

Atlantic Rich 

Auto-Data Prg... 

Avco 

A vary Inti 


ig u ; 16 u 
.! g bw 


20 Ip ; 20 It 
... 24*6 23* 

..! 33* ■ S3 * 
... 42is : 417 3 
... 261; ; 26* 
..' 171 S 1 17* 
... 2538 25 


Avnet 1 

Avon Prod 

Baker Inti 

Balt. Gas ft El 

Ban Cal 

Bangor Punta ....! 
Bank America..,/ 

Bank of N.Y i 

Bankers ToLN.Y., 

Bajrry Wright ! 

Bausah ft Lomb.. 

Baxt Trav Lab j 

Beatrice Foods. _• 

(taker Inds i 

Kbit ft Ho well 

Ball Industries ...• 

Bansflolal 1 


Beth Steal.—.../ 
Big Thae Inds.....' 
Black ft Docker.! 
Block HR i 


BlSfl 1 SHi 
225j [ 21T a 


Blue Ball 

Boeing. 


Boeing. i 

Boise Caseada —! 


Borden ~i 

Borg Warner 

Branlff Inti ! 

Briggs strain 

Bristol-Myers 

bp.: 

Arookway Glass. 
Brown Forman B 

Brown Grp 

Brown ft Sharp 
Browng Ferris.../ 
Brunswick — 


15 1478 

32 32 U 

24 t e 25* 
195? 107? 

283? 28 1 4 

33ij 35*s 
285s 28)2 

21? ! 2* 
26* , 2638 
56* I 56* 
23 I 23 
15U I 15 
37 3? | 37i« 
35s? i 551s 

16 | 16 
333a i 33i« 
17Sfl 173« 


Bdoyrus-Erle ' 15* 

Burlington Ind ...; 23 * 


Burlington Nrthn 51 

lumdy _ 18* 

Burroughs ■ 56** 

CBJ Inds. ; 55 5 9 

CBS- 43* 

CPC Inti 37is 

CSX 463s 

Campbell Red L. 11* 
Campbell Soup... 57* 
Campbell Tagg .. 23 * 
Canal Randolph.. 27s? 

Con. Pacific 231? 

Carlisle Corp 25* 

Carnation 32 

Carp Tech 37 * 

Carter Hawrey.Jp 14 ij 

Caterpillar — r 43-4 

CBIanese Corp ...; 57 

Cental ! 31* 

Centex 1 21 ?a 

Central ft Sw— 16>? 
Central Soya.— .1 115a 

Certain-teed : 12 

Coeena Aircraft- 1 lBig 
ChampHomeBJd 2* 


Champ Int. 1 16 

Champ Sp Plug-: 81 
barter Co 


Chain Manhattan! 55 * 
Chomioal NY j 33 U 


Cheese Pond... _.| 35* 
OhioagoPneumJ 15 1? 

Chtymlar. 1 6 a? 

phubb — | 44* 


Cigna. 1 

Cincinnati Mil 


Citicorp 

Cities Ssrvlos.. 

City Invest 

Clark Equipment 
Oleve Cliffs Iron. 

Clorox 

CHiett Peaby 

Coe* Cola 

Colgate Palm— 
CbJIlne Alkmen... 
Celt Inds 


Financial Times Thursday :May 13 1982 


Compaafes and Markets 


WORLD STOCK MARKETS 


May i M ay 

11 I 10 



Columbia Gas— | 35 l a j 33a# 


Combined Int—; 23 ' 22*a 

Com bust n. Eng..i 891? | 286 b 
C mwlth.Edlnn..- 22* ■ 32* 
Comm. Sate fits ! 60* ! 60-4 


Comp. Science...-. 

Cone Mills. 

Conrac _ 

Cons. Edison > 

Cons. Foods : 

Cana Freight..-; 

Con. Nat. Gas < 

ConsumorPowen 
Oont. Air Unas...; 
Conti. Carp—-—-: 

Contl. Group ■ 

Cant. Illinois 1 

Conti, inlecom.. 
Control Data — ; 


Cooper Inds. 

Ccors Adolph ! 

Copperweld ' 

Corning Glass...... 

Corroon Block.... 

CoxBroadoast'g.: 

Crane : 

Crocker Nat.. 

Crown Cork........' 

Crown Zell 

Cummins Eng....' 
Curtlss-Wrlght... 1 

Damon 

Dana 

Dart ft Kraft 

Data Gen 

Dayton-Hudson -> 

Deere — | 

Delta Air, _J 

Benny's.. ; 


Dentsply Inti ' 

Detroit Edison 

Diamond lirtl > 

Diamond Shank. J 

D'Giorgio 

Digital Equip. < 

Dillingham I 

Dillon 

Dlsnay (Walt) — 

Dome Mines. 

Donnelly (RR/ 

Dover Corp 

Dow Chemical— 

Dow Jones. 

Dresser 

Dr. Pepper 

Duke Power— 
Dun ft Brad I 

EG ft G I 


Easeo i 18*4 

Eastern Airlines., 8* 
Eastern Qu&F 21 
Eastman KodakJ 75?? 

Eaton ' 301 b 

Echlln Mfg • 14 

Eckherd Jack, ..j SOU 
Electronic Data.' 28i B 
Elect. Memo rles. 3* 

El Paso 23 5s 

Emerson Elect...] 46 s? 
Emery Air Fgt— 9'a 

Em hart ■ 55* 

Engelhard Corp! 223? 


Ensereh— \ 22U 

Esmark- ; 46* 

Ethyl 20* 

Evans Prods.— Ida 

Ex Cell 0 1 221a 

Exxon-. I 29is 

FMC ! a75 B 

Fabsrge-- 18* 

Fodders. 3*4 

Federal Co 23 

Fedoral-Mogul ... 21 
Fed.Nat.Mort,... 11 
Fed. Paper Brd... 25U 
Fi 

Fc _ 

FleldcrestMl— | 243? 
Firestone i 10* 

sa* 

nu 



Qt. Atl, Pao. Tea 

6* 

5* 

Gt. Basins Pet... 

2* 

2* 


35* 

*5* 

Gt. West Finanol 

13* 

13 

Greyhound ...... 

14* 

14* 


26* 

26* 

Gair ft Western.. 

15* 

15* 

Gulf OH 

33* 

32* 

Hall (FBI...- 

29* 

37* 

26* 

36 

Hammermlll Ppr 

26 

26 

Handleman ........ 

is* 

15* 

Hanna Mining,... 

325s 

32* 

Hareourt Brace. 

16* 

16* 

Harris Bancp_... 

29* 

291s 

Harris Corp 

31* 

31* 


17 5r 

171* 

Hecla Mining— 

8* 

8* 


32* 

327s 


19* 

19* 

Hercules — 

20* 

217ft 


42* 

427ft 


40 

40 

Hewlett Pkd 

43* 

42* 

Hilton Hotels—.. 

38* 

SB* 

Hitachi 

2a* 

28* 


19 

2B7a 

Holly Sugar 

46* 

46* 


22* 

22* 


73* 

72 

Hoover 

U 

11 

Hoover Uni 

17* 

17* 

normal Geo. V 

22* 

22 

Hospital Corp 

32* 

32 

Household Inti... 

18* 

18* 

Houston Inds .... 

19* 

197ft 

Hudson Bay Mng 

13* 

13 

Hughes Tool 

37* 

96* 

Humana — 

25* 

25* 


6 


Hutton (EF) 

30* 

29* 


30* 

31 

IU Int- 

13 

13* 

Ideal Basis Ind- 

14* 

14* 

Ideal Toy 

13* 

13* 

IO ADR 

6 

6 

Imp Corp Amer.. 

7 

6* 

INCO 

10* 

10* 

Ingersol Rand 

49* 

49* 

Inland Steel 

20)0 

2010 

Intel 

31* 

32 

Inter First Corp... 

24* 

23* 

Interlake 

27* 

28* 

Inter North— 
IBM— — . 

27 

64* 

267 S 

637ft 

Intr. Flavours 

20* 

20* 

Inti. Harvester.... 

4* 

5 

InUneomaProp. 

8* 

8* 

lnt.Paper 

*7* 

37* 

Int. Recti tier. 

13* 

12* 

Int. Tel ft Tel...:.. 

25* 

25* 

Irving Bank 

40ft 

40* 

James /FS) 

22i« 

22 

Joffn-Pilot 

BB* ' 

28* 

Jawsl Cos 

36* 

35 

Jim Walter - 

19* 

19* 

Johnson Oontr,... 

22* 

227s 

Johnson ft Jns— 

40* 

40* 

J oh nth an Logan. 

15* 

145a 

JoyMnf. 

27 

27* 

K. Mart - 

18S B 

18* 

Kaiser Alum 

12* 

12* 

Kalsar Steal.. ...... 

28* 

28'b 

Kansb Services.. 

16* 

16 

Kaufmen 3rd„... 

9*8 , 

9* 

Kay Corp...— ...... 

9* 1 

9 

Kellogg 

25* 

25* 

Ken name tai 

30* 

30* 

Kcrr-McGes 

31* 

31 

Kidds 

23* 

22* 

Klmberlsy-Clark. 

65* 

6510 

King's Dept St— 

2* 

2* 

Knight Rdr. Nws 

33 

32 

Koppers 

15 

15 

Kroahler 

7*0 

7* 

Kroger 

32* 

32* 

14* 

14* 

Lanier Bus. Prod 

17* 

16* 

Leas- Slegler 

26* 

25* 

Lsarsway Trans, 

28 

27* 

Lenox- 

39* 

B9* 

Levi Strauss 

B5ft 

25* 

Levttz Furntr 

267 a 

26* 

Ubby Owens Fd. 

25* 

22* 

Lilly (EJh 

60* 

59* 

Lincoln Nat 

44 

44 

Litton Inds. 

46* 

45* 



Loews 

92* 

94* 

Lone Star Inds .. 

21* 

22* 

Longs Drug Strs. 
Louisiana Land .. 

30 

30 

30* 

309n 

Louisiana Pac ... 

1979 

19* 

Lowe n stem 

27 

26* 

Lubrizo!-. 

21 

21* 

LuokyStrs 

M/A Com. lno..„ 

14* 

1470 

23* 

2270 

MCA 

53* 


MacMillan 

15* 

15* 

Maey 

33* 

33* 

Mfcrsy Hanover.. 

30* 

30* 

Mon vi lie Corp— 

13* 

13* 


31 

30* 

Marins Mid 

23* 

S3) a 

Marriott. 

39* 

39 

Marsh McLann.. 

34* 

34* 

Marshall Field .. 

29* 

29* 

Marti n-Mtta 

50 

20* 

Maryland Cup— 


35* 

Masco 

34* 

34* 

Massey-Fersn.... 

a* 

21, 

Mass Multi. Corp 

18* 

18* 

Mattel 

19 

187ft 

May Dept. Strs_. 

29* 

2a* 

Maytag 

28* 

283, 

McCulloch 

10* 

101* 

McDermott (JR).. 

26* 

25* 

McDonalds 

66* 

657ft 

McDonnell Doug 

35* 

36* 

MoGraw Edison.. 

297a 

30* 

McGraw-Hill ...... 

64 

53* 

McLean Trukg ... 

13 

127 B 

Mead 

19* 

19* 

Media Genl 

88 

38 

Medtronic 

45* 

45 

Mellon Neil 

34* 

35 

Melville 

477 e 

477j 

Mercantile Sts .. 

62* 

68 

Merck 

76* 

76* 




Merrill Lynch 

29 

28* 


MOM - 7* 

Metromedia .—/BOBU 
Milton Bradley.-i 19 s b 
M innesota MM._.-- 66 * 

Missouri Pac 1 65 u 

Mobil 2454 

Modem Msrohgj 8 

Mohaseo ; IOT3 

Monarch M/T. / 26’s 

Monsanto t 67*4 

Moore MoCmrk..| 22* 

Morgan UP) 5S?a 

Motorola....'..— 1 61* 
Munslngwsar ....l 12ft? 
Murphy JQC> .....: 11* 

Murphy CM I 24is 

Nabisco Brands' 33* 
No! co Cham 1 46H 


Schlltz Brew .... 
Sohlumbeger— 

SCM 

Scott Paper— 

Seacon 

Seagram ..... 

Sealed Power — 

Searle (GO) 

Sears Roebuck... 
Security Pao 1 

BaHnfl . ' 

Shell Oil— "! 

Shell Trans ! 

She rwln-Wmcu ...- 

Signal 

Slgnode 


Nat. Can. 1 

Nat. Detroit 

NaL Diet. Chem.. 
Nat. Gypsum.:.... 


Nat. Medloal Ent 
Nat. Bemloduotri 
Nat. Service IndJ 
Nat. Standard ...J 

Nat. Steel —I 

N atoms*. — ... 

NCNB 


NCR. -.j 

New England EJ..I 
NY State E ft O' 

NY Times — ! 

Kawmont Mining, 
Niap. Mohawk....' 

NICOR Inc. -1 

Nielsen lACl A — 
NL Industries —I 


Simplicity Pstt.. 

Singer 

Skyline 

Smith Inti 

Smith Kline Beck' 

Sonetta |ntl ( 

Sony 

Southeast Ban kg. 
Sth. Cal. Edison./ 
Southern Co——! 
sthn. Nat. Res.../ 
Sthn. N. Eng. Tel. 1 

Sthn Pacific. 1 

Sthn. Railway-... 

Southland. ' 

SW Bancohar ca- 

Sper ry Corp 

Spring Wills 

Square D 

Squibb 

Std. Brands Paint 


NL.T ! 


Norfolk ft Westn 
Nth. Am. Coal..... 


Nth. Anu Philips) 
Mttm. Stata Pwr.l 


Nthn. State Pwr.| 
North gate Exp... 

Northrop J 

NWest Airlines.- 
NWest Bancorp- 

Nwest Inds 

Nwestn Mutual- 
Nwest Steel W...1 

Norton j 

Norton Simon — 
Occidental Pet—j 
Ocean Drill EXp.i 

Ogden —I 

Ogllvy ft Mrth. — ! 

Ohio Edison 

Olln - 

Omarfc. -.1 

Oneok 


Std Oil Ctifornla. 1 
Std Oil lndlana...i 

Std OH Ohio I 

Stanley Wka 
Stauffer Chem ...; 
Sterling Drug-... 
Stevens (JPi .....J 
Stokely Van K— 
Storage Tech. 

Sun Co 

Sundstrand j 

Superior oil 

Super Vai Strs— : 

Syntax. : 

TRW 

Taft ; 

Tampax- 


outboard Marine! 
Overseas Ship.-. I 
Owens-Coming J 

Owene-Ullnola ■ 

PHH Group , 

PPG Inds 

Pa bat Brewing...,' 
Pac. Ga* & Elect.' 
Pac. Lighting—; 
Pac. Lumber ; 


25* 1 241? 

161? 156a 

20 19T S 

26S| , 266* 
21*4 22 1 B 

541b 1 336* 

21 18* 

23Tg i 23* 
2334 23*( 

lfi7 B ! 197i 


Pac. Tef.ftref—.i 

Palm Beach ' 

Pan. Am. Air. 

Pan. Hand Pipe..! 
Parker Drilling... 
Parker Hanfn-... 

Peabody Inti 

Penn Central 

Penney MCI 

Pennzoll ! 


Tandy i aBJ* 

Teledyne 119 

Tektronix J 641? 

Tenneco j SB* 

TesoraPet —J 21U 

Texaco ! 31 U 

Texas Comm. Bk 34* 
Texas Eastern.-. 1 49* 
Texas Gas Tm....'; 27 
Texas Instr'm'ts.! 89k 
Texas Oil ft Gat..! 32 ig 

Texas Utilities 23*4 

Textron j £3* 

Thermo Electro... 15 
Thornes Betts..... 61 

Tidewater — 26 

Tiger Inti 9* 

Time Ine. ' 35* 

Times Mirror : 44 


Peoples Energy < 

Pepeico 

Perkin Elmer.—.! 

Petrie Stores I 

Petrolane — 1 

Pfizer I 

Phelps Dodge _. 

Phlfa Elect 

Phlbro .. ..a 

Philip Morris...— I 

Phillips Pet 

PHIsbury 

Pioneer Corp — 1 
Pltney-Bowes .... 

Plttston 

Planning Res'ch 

Plessey — ... 

Polaroid — 

Potlatch 

Prentice Hall 

Procter Gamble. 


Timken— 

Tipperary.. 

Tonka 

Total Pet 

Trane 

Tranuumerla* ... 

Transway.. 

Trans World — 

Travelers - 

Trl control 


Tri Continental- 
Triton Energy- 

TVIer - 

UAL 

UMC India...— 
Unilever N.V. - 

Union Camp. 

Union Carbide... 


185* r 18* 
,.! 14k 13k 


.[ 16k 16k 

.! 19 19 


8k 8k 
_ 62k 62k 

J 49k 49* 

46k 46* 


Pub. Serv. E ft G,1 21* 
Pub. S. Indiana- 23k 

Purex- 30*4 

Purolator 3573 

Quaker Oats | 41 

Quanex > 10 

Ouestor 13 k 

RCA— I 20t b 

Raison Purina-...; 137? 

Ramada inns ! 5* 

Rank Org. ADR...; 3 

Raytheon 36* 

Reading Bates,.,. 17* 

Redman Inds - 14* 

Reeves Bros . .. ..1 67 
Relchtiold Chem. 12 1? 


Union Oil Cal — ..! 36k 
Union Pacific — 41 
Uniroyal 8 


Uni royal— 0 

Untd Brands 11* 

Utd. Energy Res.: 35k 
US Fidelity G 44* 


US Gypsum .] 29 Tb 

US Homs. 14k 

US Inds I 10k 

US Shoe- 32 

us steel 26k 

US Surgical - 21k 

US Tobacco | 47k 

US Trust 366 t 

Utd. Tech nolgs- 39*4 
Utd. Telecomms.; 20k 

Upjohn 46* 

VF 40k 

Varlan Assocs-. .> 35 
Y«f nitron Ilk 


Republlo Steal... 

Rep of Texas 

Reach Cottrell.... 

Resort Inti A ; 

Revco 

Rovers Copper .. 

Revlon 

Rexnord 

ReynoldsfRJ) 

Reynolds Mtls—. 

Rite Aid 

Roadway Exps... 
Robbins (AH).—. 
Rochester Gas... 

Roakwell Inti 

Rohm ‘ft Haas.....i 
Rollins— 


Holm — 

Roper Corp- I 

Rowan J 

Royal Crown I 

Royal Dutch j 

Rubbermaid j 

Ryan Homes 

Ryder System-., i 
8FN Companies.. 
SPS Technol‘B'88 

Sabins Corp 

Safeco 

Safeway Stores ..' 
St Paul Cob 


Virginia EP 

Vulcan Mntrla.... 
Walker 1H1 Rea ... 
Wal-Mart Stores. 

Wamaoo 

Warner Comma.-) 
Warner-Lambt .. 
Washington Post 
Waste Mangt...../ 

WeisMkts. 

Wells Fargo - 

W. Point Poppl— 
Western Airlines 
Westn. Nth. Amr. 
Westl ng house— 

Westvaoe 

Weyerhaeuser— 


St Regis Paper... 

Sants Fs Inds 

Saul Invest 

Saxon Indus. 

Sobering Plough. 


Wheoiabratr F...I 
Wheeling Pitts .. l 

Whirlpool I 

White Consoltd.. 

Whittaker 

Wioksa 

William* CO 

Winn-Dixie Str....' 

Winnebago 

Wise Elec Powor, 

Woolworth 

Wrigley 

Wyly 

Xerox 

Yellow Frt Sya .. 

Zapata - 

Zenith Radio 


Indices 


NEW YORK 


-DOW JONES 


■ 1 i ; ■ 

May ' May May May May May 
11 1 10 ; 7:6 6,4 


1903 Since CmpH't'n 
High 1 Low < High | Low 


alnduatr'ls BBbJM. BM.S3 8E3J0 865 JO 854.46 854.45 682.6S ! 796.A7 1B51.7D ' 47.2Z 


NimaBnda. 59.32' E0.6E 63.61- - 


1 : l4/li 

69.74 59.63, 90.06 
I 1 lO/Si 


(6/5) (11/1/75) (2/7/52) 
55.67 , — . — 

112/21 ; 


Transport.. 352.64, 349.55 : 353.30 36Z.97 : 349.55 346.36 ' 586.46 j 514.56 : 447.56 i 12JS2 


8/51 (16,4/81). 18/7/37) 


Utilities 116.31 116 AS • 115.35 118,42’ 114.79 1 14.591 116.95 ' 103.81’ 155.52. 10.5 


Trading Vol ' I 7 ! I 

OOQ-t .34,680 46.500 - 67.150 67,540,56.660 56,730! 

; ! I r i 

• Day's high 870.62 low 857.31 


(15/1) (30/4/68) (26/4/42) 


Ind. dfv. yield .% 


April 30 : April 23 Year ago (Approx 


j 

r : t 

May ' May j May ! May 

12 : 11 , itf 1 7 

High 

1062 

Low 

AUSTRALIA 

All Ortf. (1/1/86) 

Metal ft Minis. (1.T/80) 

625.5 ; 918.4 '> G1I.B i 612.7 
3S5.fi ! SBS.S ■ 5BZ.1 ! 583.2 

M6.S f4/1) 
425.1 (elf 1- 

466.8 (18/5) 

. 322.2 (2/4) 

AUSTRIA 

Orsdit Akticrn (2/1/62) 

62.48* 82.48 62.54' 82.40 

68.86 (4/1) 

; GZ.IE (18/4) 

BELGIUM 

Belgian SE (31/12/851 

84.68 j Sl.Sai 94.27] 84.15 

102.43 (B/4) 

88.12 (20/1) 

DENMARK 

Copenhagen SE (1/1/73) | 

! ! 1 

118.81- 118.84' 120.02, (cl 

12S .25 (26/2) 

j 112.90 (9/S) 

FRANCE 

CAS General (81(12/81) 1 
Ind Tendance (31/ 12/81)! 

> 1 i 

111.6 [ 111.0 111.0 HU-8 
m.B 1 mjb I 125.4 723.9 

111.8 ni/5) 

124.8 (12/S) 

! BSJ (4/1) 

! 97 7 (4/1) 


STANDARD AND POORS 


;Slnca CmpH’t'n 


tr ' May j May ! May ! May . May May j ! — — — 

■ : 11 ■ 10 | 7 : 6 1 6 4 j High Low j High 1 Low 

lrtdUEt'la....! 152.96' 131.74' 155.03 152.03 150,62 150.56' 157.35 ^ 118.41 ! 1W.B8 1 ' 5.52 
I 1 <«/li ( ,B/3i (26/1 1 ,80 |50:6-32| 

Composite' 116.42 118.58 119.47 115.6E 117,07, 1)7.48' 122.74-107.54 140.52, 4.407 


GERMANY J j i , 

FAZ-Aktien (51/72/601 ■ 251.05 250.83' 751.24' 255.92 269.13 (5/4) I 718.56 ns/l) 
Commerzbank! Deo 1 BCD; 704.6 : 706.7 . 705.4 i 712.7 1 729.8 iBiii 1 B66.7 (18/ li 


HOLLAND 1 i 

ANP-CBS General f197B) I 34.7 : 94.2 95.0 I 84.7 • 95.9/10/5) ' 34.0(5/1) 

ANP-C8S Induat 11970) I 74.8. 74.2' 74J ; 74^; 74.6 (10/5) 65.2 |4/Ij 


■ 4,1. ■ ifl. ti f28.l1/M, ,1:6,521 


Ind. div. yield % 


May 6 : April 28 ■ April 21 ' Year ago ' approx 1 


HCNG KONG 

Hang Seng Bank f5l /7/B4 1587.55 ISSUE ISn.H 1688.97 1445,62 (12/1) ' 1128,85 |9/D 


ITALY i 

Banea Comm Ral.11977) fu> ' 165^0 186.52: 1BB.5B 212JB (IBiSl 161.45(15/11 


ind. P/E Ratio 


ieng Gov. Bond yield 


JAPAN'* L ' 

Dow Average (10/6/481 7S39.78.7ESB, 12 7684.59 7518.78' 792G.S5 (27i1» 8B88.B0 (17/D 

Tokyo New SEi4/1/B8) ; 557.04] 557 AS' 66334] 567.82: 665^8(27/1/ I 520.70 (17/3/ 


NY. S.E. ALL COMMON 


Rises and Falls 

.May 11 May 10. May 7 


NORWAY 
Oslo S£ (1/1/72) 


121.94 121 AE: 121.62 120.11 1B0A9 (26/1) I 109.12 (1 IQ 


-May ! May; May (May ! Issues Traded ! 1,883 11,914 1 1,80 9 

: 11 1 10 I 7 . 6 I High ! LOW Jbses , 914 ; 475 ; 927 

r: ' ' 1 Falla _j 519 :1.013 I 564 

88.8068.22 68.76 68.3 ll 72.20 68.58 ynchangad 457 / 426 J 398 


SINGAPORE 


i4/l| (12/3) New Highs [ 46 4B 

New Law* 13 • 16 


Straits Times (19GD j 778.8F 777.20| 779 A V 771.08; 810.76(8/1) [ SS7.48 (9/D 

SOUTH AFRICA j ‘ [ ' j | 

Gold (1858/ ( fu> 410.8 414.4 I 417.4 / 6S9J (S/1) 410.9 (11/5) 

Industrial (1966) I (ui i 594.6 I 5BE.2 I 595.9 I 711.7(8/11 i 665.5 (28/ D 


MONTREAL 


May I May i May 'May 6 - 
, 11 ! 10 | 7 j 6 ! 


Madrid SE (SS/12/81) ‘ 101.80) 101.12! (o) J 101.18 107.45 (9/2) ! 99.17 (5/1) 


Industrials 232.96; 265.36 263.E7' 280.56! S32.79 fJ.1l i 270.46 <16.5| 
Combined 274.51 297.681 266.26! 263.56 51G.M (4.1) 1 259 JM (IG.D 


-TORONTO Composite 1532.6 1555.1 !1644.5 !1527.2 I 1956J (4.1) . .1526A (5/E) 


SWEDEN ! I 1 ; 

Jacobson ft P. (1/1AB) , (u) : 5B5.75I 682.BK 678.67; 653.93 (22/1) ] 566.52 (28/D 

SWITZERLAND I i i ! . 

Swiss Bank Cp n.(51fia/M" 290.2 ; 253.4 ; 257.2 | 267.2 ; 295.1 (11/lj , 242.5 (11/S> 


NEW YORK ACT7YE STOCKS 


WORLD ' i 

Capital Inti. (1/1 (7» ; - • — j 140.0 l 140.8 : 147.2 (4/1> , 129.1 M7/5) 





Change 




Change 

. Tuesday 

Stocks Closing 

on 


Stocks Closing 

on 

^ ■ 

traded 

price 

day 


traded 

pncB 

day 

Exxon 

— 905.700 

29h 

+ H 

General Momrs 

. 619,300 

43^ 

+ ", 

Mobil .._ 

813.400 

2A\ 

+ * 

Std. Oil Ohio .. 

. 603.300 

38 

+ 1* 

Tkzaco 

734.900 

31* 

+ * 

Bchlumberger .. 

. 605.100 

4 a* 

!+ '* 

Nob* Aft. ... 

679. ICO 

Ml, 

~ \ 

Sony 

. 566.300 

15", 

H- 

Jack Eckard 

642.200 

20h 

- * 

Genl. Dynamics 549.500 

22 

— ■ 


(■•) Saturday May 8; Japan Dow 7553.17. TSE 559 31. 

Base values of all indices era 100 except Australia AH Ordinary and Metals— 
500. NYSE AH Common — 50; Standard and Poors—' Hk and Toronto— ^ 1,000s the 
last named based on 1375. t Excluding bonds. 1 400 industrials. 5 400 
Industrisly (Hus 40 Utilrtlu, 40 Financials and 2D Trsnspcrts. aCloaed 
u Unavailable. 


Dow off 2.3 at mid-session 




AFTER GAINING further 
ground at the outset. Wall Street 
, receded in active early trading 
to point modestly lower un- 
balance at mid-session yesterday. 

The Dow Jones Industrial 
Average, which rallied 4.85 on 
Tuesday, gained about five 
points more before declining to 
863.58, down 2J29 on the over- 
night level. The NYSE All Com- 
mon Index, 20 cents higher 
initially, was a net 17 cents off 
at S6S.63. Trading volume in- 
creased further to 45.6m shares, 
from the previous days 1 pm 
level of 35.57m. 

Analysts attributed some of 
the downturn to profit-taking. 
However, they said selling was 
also sparked off by a farther 
statement from influential 
Salomon Brothers economist 
Henry Kaufman that interest 
rates would remain high. 

Mr Kaufman . said It was 
unlikely that there would be any 
major change, in the Federal 
Reserve's monetary policy dur- 
ing the year. On Sunday, he said 
interest rates would ease in the 
near-term but then rise to their 
1981 highs. 

Most Blue Chip stocks 
declined, but with General 
Motors the most significant ex- 
ception. GM was the volume 
leader, climbing SI to 844 on 
turnover of more than lm 
shares. Analysts attributed the 
activity to a favourable report 
on the company released by 
Paine Webber Jackson Curtis. 

GB'g performance affected the 
other car-makers, with Ford up 
3 to S24J and Chrysler } to S6J. 

Technology stocks weakened, 
with IBM off ( to S63} and 
Tandy g to $28%. both in active 
trading. Datapoint slipped 2 to 
S12j, Digital Equipment 1} to 
$78 and Control Data 2 to $283. 
Control Data said its Magnetic 
Peripherals subsidiary would 
lay off about 9,500 employees for 
four-to-12 days' this month and 
also in July. 

THE AMERICAN SE Market 


Value Index was 0.22 easier at 
280.72 at 1 pm. Volume 3.12m 
shares. 


Canada 


Closing prices for North 
America were not available 
for this edition. 


Markets tn Canada partially, 
reacted after a strong opening, 
the Toronto Composite Index 
showing a fresh net gain of only 
22 at 1,594.9 at mid-session after 
touching 1.502^5. 

PhflHp Bettner, with Nesbitt 
Thomson Bongard, said that 
while some stocks continued to 
do well, the market remained 
concerned about high interest 
rates. 

Among the sub-group indices. 
Golds were up 16.3 to 2,108.4 and 
Real Estate 65.7 to 3,933.5, but 
Oil and Gas lost 16.9 to 2,877.4. 

Tokyo 

The Market gave up early 
gains to finish mixed on moderate 
turnover. Initial firmness re- 
flected a stronger Yen and over- 
night gains on Wall Street 

The Nikkei-Dow Jones Average 
climbed 2L57 in the first 15 
minutes of trading, then declined 
steadily to end just 1.66 up on 
the day at 7.539.78. The Tokyo 
SE Index shed 0.52 to 557 M. 

Traders said the market had 
entered a period of adjustment 
following a surge last week. 

Oil shares went up briskly, 
however, and maintained their 
gains. Traders traced the advance 
to anticipation that the world oil 
market may tighten later this 
year as a result of production 
cutbacks. The Yen's recent 
strength has brought speculation 
about better oil company earn- 
ings and thus also helped, the 
shares moved higher. Nippon Oil 
advanced Y24 to Y1.010 and 
Tdkoku Oil Y15 to Y951. 

Among Light Electricals, Sony 
gained Y3Q to Y3.550, while 
Pioneer shed Y60 to Y1.480. In 
motors. Isuzn put on Y16 to Y3S1. 
but Honda lost Y8 to Y75L Canon 
declined Y22 to Y875. in the 
Precision Instruments group and 
Ricoh dipped Y14 to Y54S. 

Pharmaceuticals generally put 
on a good performance, anticipat- 
ing fresh developments in anti- 
cancer drugs. Fujisawa gained 


Y30 to Y1.300. Talsho ¥21 to 
Y596 and Green Cross Y20 to 
Y2.160. 

Although speculative Issues 
remained in the limelight all 
day, those that had posted sub- 
stantial gains last week generally 
turned lower. Included . among 
these is 'Sumitomo Metal Mining 
(down Y24 to Y841-1, which has 
kept investors guessing about the 
possible gold discovery in South- 
west Japan. - 


AS 1.87 and Oakbridge 4 cents, to 
AS1.42. 

• Among Metal Mining issues, 
CRA increased 15 cents to AS3.35, 
North KH 7 cents to A $2 .20. HIM 
5 cents to AS3.45 and Western 
4 cents to AS4.00. 

Market, leader BHP streng- 
thened 22 cents to AS8.42, while 
CSR moved ahead 34 cents to 
A $3.42. 


fV- * 
i l 
l ** 


Germany 


Switzerland 


The market closed mixed after 
early gains were eroded follow- 
ing unfavourable annual reports 
which dampened overall 
sentiment. 

Both BASF, in Chemicals, and 
AEG, in Electricals, announced 
discouraging outlooks for 19S2 
yesterday. 

BASF, which also reported a 
sharp decline in first-quarter 
pre-tax earnings, fell DM 3.40 
to DM 128.60. A forecast from 
AEG of another year of losses 
for 1982 brought the shares 
down DM L1Q to DM 39.90. 

Other Chemicals were easier, 
hut some major Electricals 
gained ground, Siemens firming 
DM 2 to DM 222 and Varta 
DM 1.50 to DM 156. 

Domestic Bond prices were 
narrowly mixed, recording 
changes limited to 30 pfennigs 
either way. The Bundesbank, 
bought DM 12.2m of stock to 
balance the market 


Share prices closed firm tn con- 
siderably higher turnover as 
Investors became increasingly 
optimistic about the direction of 
Swiss interest rates. The Swiss 
Bank Corporation Industrials 
index added LS at 260.2. 

The recent rate decline has so 
far stimulated the Bond market 
rather than shares, dealers said, 
noting that a reversal of tills 
trend was now gradually setting 
in. 

Swiss Bonds continued higher 
in moderate trading, with Swiss 
franc Foreign Bonds and 
Domestic issues showing gains of 
i to } of a percentage point 


Australia 

Prices rose for the fourth 
successive day in response to the 
belief on Wall Street that the 
U.S. recession is past 1st -worst 
and that U.5. interest rates will 
decline in the short-term. 

The All Ordinaries Index put 
on a farther 8.9 to close at 525.3. 
The Oil and Gas Index gained 
15.4 to 492.5, Metals and Minerals 
9.3 to 395.6 and the All Indus- 
trials 6.3 to 672.5. 

Asian traders were again 
active, with leading Minings and 
heavyweight stocks attracting 
most attention. UMAL and Oak- 
bridge led the advance in Coals, 
with UMAL gaining 12 cents to 


Hong Kong 

SHKB and SHKS resumed 
trading, after a two-day suspen- 
sion due to tbe negotiations, 
involving both Merrill Lynch, of 
the D.S.. and t he French Paribas 
Group. SHKB closed 20 cent s 
down at HKS5.70, while SHKS 
finished 70 cents up at HKS4.50, 
both compared with last Friday’s 
close. 

Jardise Matheson put nn 40 
cents to HK820.00, Bong Kong 
Land 15 cents to HKS8.25 and 
Tai Cheung 7.5 cents to HKS2.S5. 
However, in contract. China light 
shed. 20 cents to HR3I6.29 and 
Swire Pacific A 20 cents to 
HKS12 30. 

The market followed Tuesday’s 
pattern, easing at first and ptek- 
inp ud towards, tbe close to end 
mixed to firmer on balance. 

Tbe Hong Seng Index gained 
a further 6.09 to close at 1,387.35 
after a moderate business. Turn- 
over amounted to HKS227.76m 
on the four exchanges, down 
from HK$314.05m on Tuesday. 


CANADA 


iSBLGIUM (continued) 


HOLLAND 


I AUSTRALIA 


I JAPAN (continued) 


May j May 
11 10 


Pries +oi 
Fra. — 


Price + or 
FIs. — 


t Pries +«r 
|Aust.3 — 


Pries I + or 
Yon - 


A MCA Int 171| 163* 

Abltlbi. 1618 151* 

Agnloo Eagle..—. 7 7 

Aloan Alumin SA* 94 

Algoma Steel .... XI 21 

Asbestos. — ll*a 12 

Bk. Montreal ..... 20la 1954 
Bk. Nova Scotia BIT* aita 
Basle Resources- SJBS 3. IS 


Petroflna 

Royals Beige...... 

Sec. Gan. Banq. 
Sac Gan Beige.. 

Safina. ..... 

Sotvay . — 

Tracton Elect. ... 

UCB. 

VIeHleMont 


4,806 +100 
5x00 —10 
2,750 + 25 
1.240 -6 
5,415 -20 
1,050 +10 
2,830 —BO 
1,970 —30 
£.1301 +10 


Be II Canada 

Bow Volley 

BP Canada 

Brascan A 

Brlneo. — 

B. C. Forest.-... 

OIL Ine 

Cadillac Funds w 
Camflo Mines-...) 
Can Cement ; 


is* ; is* 
461* 46 U 

14ia j 141 b 
61* I 31* 
3554 33 Ig 

65M 5514 

241t 84 1 B 

35* 33* 

5 1Tb 31* 
42 l h 43 
83* 83* 
84 8414 

4 • 4* 

15* 18* 

86 86 
81 81 
88* 87* 


Can NW Lands... 
Can Packers-... 
Can Trusca ...... 

Can Imp Bank- 

Can Pacific... 

Can P. Ent. 

Can Tire 

Chieftain ; 

Cominco 

Cons Bath at A. . ; 
Cant Bk- Canada- 
Coseka Resrc’es.! 

Contain 

Daon Oeval... 

Denison Mines....' 
Dome Mines 


85 la J 83U 
Sett SB 


88 I an« 

88 8614 

15'>4 14 

35* > 34 
lBtn 1 18U 
3B&4 1 39U 
14 l B I 14i« 
6* . 6** 
6 6 

7 7 

3.45 : 3.15 
2014 SO* 

12TJ , 13* 


DENMARK 



May IS 

Pries 

% 

+ or 

Andelsbanken— 
Baltina Skand .... 

CopHandelsbank 
D. Sukkarfab 

113J 

357 

136 

S3B.4 

Z3 

Zo3* 


DanskaBank 186 I 

East Asiatic- i 100.4! 

Forenda Berygg.i 506 1 
Foreneda Damp.l 407.4 

GNT Hldg 1 275 < 

Jyske Bank 175 | 

Nord Kabel.. 156.6 

Novo Ind '1,628.4 

Papirfabrlkker .. 08.6 

Privatbanken 135 

Provfnsbanken...- 113.4 

Smklth (Ff) 2X7 

S. Be rend sen 517.4 

Superfos 99.2 


ACF Holding—... 

Ahold- 

AKZO - 

ABN 

AMEV. 

AMRO.. 

Bredaro Cert...— 
Boskalls Western 
Buhrmann-Tet 
Calaod Hldgs..—. 
Elsevier NDU ...... 

Ennio 

Eure Oomm Tst- 
GIsL Brocades-... 

Helneken ... 

Hoogovens - 

Hunter Douglas- 

Int Muller— 

KLM— - 

Naardon — 

Nat Ned cert — 
Ned Cred Bank... 
Ned Mid Bank— 

Ned Uoyd- 

lOceGrlntsn- 

Ommeren (Van).. 
Paktioed -.! 


Dome Petroleum! 
Dom Foundries A 

Dom Stores 

Dom tar - 

Falcon Nickel 

Genstar 

Gt. West Ufa. — 

Gulf Canada 

G ul (stream Ros_ 
Hawk Sid. Can ... 


9J* 1 Si B 
32 11* 

16* 16 
19 IB* 
47* 47 

14* 14* 

810 810 
15* 14T B 
3.00 3.00 

B* 9* 


Phillip* 

Rijn-Schelde | 

Robeco 

Rodamco 

Rollnoo.^ 

Rorento 

Royal Dutch ' 

Sfavenburg's 

Tokyo Pac Hg .... 

Unilever 

viking Res 

Vmf Stork — 

VNU ■ 

West Utr Bank J 


FRANCE 


May 12 Pries +or 
Fra. — 


Holllnger Argus.. 
Hudson Bay Mng 

Hudson's Bay 

Husky OH — 

I m a sea 

Imp Oil A 

Inca.. 

lndal I 

Intar. Pipe 


87 27 

16* 16 
88* 38* 

7* 6* 

40* 4OS4 
24* 83* 

13 18 Tg 

9* 1 9* 
17* 17* 


Mac Bloodel > 

Marks A Spencer 
Massey Ferg. . . 1 
Me Intyro Minos... 
Merland Explor.. 

Mitel Corp 

Moors Corp 

Nat. Sea Prods A' 
Noranda Mines . ' 


80* { 80 
10 * 10 * 
3.05 ! 8.95 
30 i 50 
5.37 1 5.37 
80* ; 19* 
38* > 37* 
7* I 7* 
15* ; is* 


Emprunt *i% 1878 
Emprunt 7% 1973- 

CNE 3% 

AlrUquIde. 

Aquitaine — 

AuPrlntempa 

BIC 

Bouygues 

BSN Gervals. 

Carre four 

Club M editor 

CFAO 

CSFl Thomsoni... 


May 18 Price + or 
Lire - 


Cle Banealre I 

Cle Gen Eaux.. ... 

Coflmeg 

Crauoot Loire.. .J 



Nthn. Telecom . I 65* ■ BB 
OakwoodPat — ' 10* | 10* 
Pacific Copper...- 1.78 1 1.77 
Pan Can Patrol...- 67 j 64* 

Patino .. 18 19 

Plaoer Dav 12 11* 

Power Corp I 11* | 11* 

Quebec Strgn j 2.45 ; 8,60 


Ranger Oil i 8* ; 

Reed Stonhs A ... 11* ] 

Rio Aigom 34 | 

Royal Bank < 21* 

Royal TrustcO A.., 13* 1 

Sceptre Res. 1 6* : 

Seagram 68 

Shell can OH 15* 1 

Steel of Can A.. J 20* \ 



AssicurGen- 157,000 

Banea Com 'la 55,000 

Baatogl Fln_ 157 

Centra/a 4^390 

Credito Vorestnol 7,686 

Flat 1,716 

Flnaldar 1 39.75 

Invest 1 8,560 

Itol cemsntl - 34,500 

Italsider. IZOg 

Montedison I 1 17 

Olivetti ! 2 615 

Pirelli Co 8,403 

Pirelli Spa 1,360 

Snla Vlscoaa 645 

Toro ABsIc 14.890 

do. Prof 13,801 


ANZ Group ! 

Ac row Aunt 

Ampol Pet 

Assoc. Pulp Pap 

Audlmco 

AusLCons. ind.... 
Aust. Guarant ... 
AubL Nat Inds...? 

Aust. Paper I 

Bank NSW I 

Blue Metal ..J 

Band Hldgs 

Baral -.1- 

Bl'vllle Copper..., 
Brambles Inds.... 

Bridge Oil 

BHP 

Brunswick Oil ... 

CRA 

CSR 

Carlton ft Utd 

Castle main a Jys 

Glutr OlHAustl ... 

Do. Opts 

Cockburn Cemt. 
Cotes (GJ.'i.. — - 

Oomalco 

Costaln 

Crusader Oil J 

Dunlop 

Elder-Smith G.M.I 
Endeavour Res...' 
Gan. Pro. Trust . ; 
Hartogen Energy 
Hookor j 

ier Aust 

Jennings J 

Jimb lana(SOcFP 

Jones (D1 — 1 

Kia Ora Gold „.„i 
Leonard Oil.: 

1 

MeekatharraMa., 

Meridian Oil 

Monarch Pat... J 

Myer Emp : 

Nat. Bank. ! 

News ! 

Nicholas Kiwi.... 
North Bkn Hill-.. 

Oakbridge 

Otter Expel 1 

Pan con 

Pan Pad fie 

Pioneer Co 

Queen Margt G. 
Reckitt ft Coin .. 

Santos 

Sleigh /HC> 

Southland M'n'g. 
Soargos 
Thos. Na 

Tooth 

UMAL C01 
Valient C 
Waltons.. 

Western 
Woodside 
Wool wort 


Kubota — 

Kumgaal 


I Kyoto Ceramic _. [3,340 


Uon 

Maeda Cons 

Maklta , 

Marubeni 


I Marudah. J 600 

L u ...! 1 nan 


Marui 89B 

Matsushita... 1,140 
M'ta Elec Works. 660 

M'blshi Bank 600 

M'blshl Carp 642 

M'blahl Elect 279 

M’blshi R1 East- 462 

MHt.; 880 

Mitsui Co 310 

Mitsui R1 Eut.„._ 661 

Mttsu-koshL 372 

NGK Insulators... 520 
Nippon D*nsa.._ 1,110 
Nippon GaJdd— — 600 
Nfppon Meat....... 400 

Nippon Oil.- 11.010 

Nippon Shlmnn.j B86 
Nippon Steel....... - 163 

Nippon Sul»an. _ 823 

NTV 4,800 

Nissan Motor « 825 

Nlsshin Flour ( 337 


N/sshin Steal 1 167 


Normura 47B 

NYK 276 

Olympus 900 

Orient 1.380 

Pioneer.. >1,480 

Renown- i 750 

Ricoh 848 

Sanyo Elect. 445 

Sapporo 863 

Sekisui Prefab... 725 

Sharp 788 

Shiaiado 820 

Sony. - —-[3,650 

Stanley 370 

S'tomo Marine 885 

Tdihel Dengyo.... 645 

T^sei Corp 275 

Tai s ho Pharm 5B6 

Takeda 86B 

TDK £,730 

Teijin ! 236 

Teikoku Oil j 961 


TBS [ 462 

Tokio Marins : 456 

TokyoEiect.Pwr.1 680 

Tokyo Gas 112 

Tokyo Sanyo 470 

TokyuCorp 201 

Toshiba 349 

TOTO 426 

Toyo Selkan j 468 

Toyota Motor '1,040 

Victor 3,860 

Wacoal 785 

Yamaha 731 

Yamuaki : 577 

Yasuda Fire ’j 237 

Yokogawa Bdge.: 550 



Pernod R I card 

Perrier 

Peugeot 8.A. .. . 

Poolaln 

Radiotech 

Redouts 


Took B | 

Texaco Cana da., i 
Thdhnson NewsAl 
Toronto Dom Sk.| 
TranaCan Pipe...) 
Trans Mntn.Oil A] 
Utd. Sisoo Mines; 
Walker (Hi Res ...I 
Wastcoat Trans.. 
Weston (Geo) ■ 


Roussel U clef.... 
Skis Rossignol ... 
Telemech Elect 
Valeo 


1 1. 

•j 770 ; 
■ 720 
! 64.5 

.1 4D2 I 

. 181 j 

. 17B.4< 
■I 142 | 
.1 335 I 
.1 1.0701 

. 600 | 
- 615 I 
I 230 I 


Bergans Baks,,...; 113 ■ —0.5 

Borrsgaard 115 : 

Credltbank. 137.5. 

Elkem ' 50 [ -8 

Koamos [ 330 ; +30 

Norsk Hydro ; 310 ; 

Storebrand 225 : —0.5 


Cheung Kong., 


SWEDEN 


■ 1 

May 12 Price [ + or 
Kroner. — . 


GERMANY 


Price + or 
Dm. — 


AUSTRIA 


1 | 

May 12 ; Price ■ + or 


Creditanstalt .. ..I 213 ■ 

Landerbnnk | 188 1 

Perlmooser 299 I +1 

Somperit 72 1 

Steyr Daimler 160 

Veltachor Mag ...j 200 | 


AEG-Tslef. I 

Allianz Vers. 

BASF 

BAYER 

Bay or- Hypo 

Bay er-Ve rein 

BHF-Bank 1 

BMW 

Brown Bo vert.. . | 
Commerzbank ... 
Conti Gumml... . 
Daimler Benz,,,.. 

Deguua 

Demag 

D'sohe Babcock. 
Deutsche Bank... 

DU Schult- 

Oresdner Bank... 

GHH 

Hapag Uoyd 


AG A...- 

Alfa-Laval— 

ASEA 

Astra 

Atjas Copco. 

Bollden 

Cellulose 

Electrolux 

Ericsson 

Esselte(Frae) 

Fagersta ^...1 

Fortia /Free) I 

Mo och Dom I 

Saab-Skanfa * 

Sand vile (Free/....; 

Skandla. ! 

Skan Enskllda....! 

SKFB I 

St Kopparberg ... 
Bvwr Handaisbn.! 
Swedish Match..- 
Volvo (Frosl j 


263 +53 

206 

163 

3B2 —2 

107 —1 

206 +1 

216 

95 +O.B 
199 —1 

IBB 


Cross Harbour. - 10.9 | 
Hang Seng Bank., 95.0 1 

HK Electric ' 6^0, 

HK Kowloon Bh..[ S.90i 

HK Land ! 8J85 

Hk Shanghl Kk ..j 12.0 1 
HK Telephone. .. 26.9 
Hutohison Wpa...; 17.5 
Jardlno Math.. ..< 20.0 
New World Dev.. . 4.40 
O'seas Trust Bk. 6.20 

SHK Props 7.5 

Swire Pao A. 12.3 

Wheal' k Mord A. 6.75. 
Wheal 1 KMariU'a 5.1 
World Int. HldgsJ 3.12 


+0.1 UBO.._ - 1 < 

+ 0.4 — — 

-o!k SOUTH AFRICA 


2.Z6 

4-0D1 

4.04 

+ QM 

8^5 

+ 0J5 

8.75 

+asG 

3.08 

PM , , 

3.18 



6.40 

+ 0.06 

5.2 


9.3 


3.34 

-0.01 

0.75 

-0.85 

4.44 

.— .. 


| JAPAN 


130 I +1 
138 —2 

106 | —2 
12B < -1 

185 ! 

455 I -t-2 
220 ! +3 
126 I -1 
273 j -11 
109 \ +1 

107 j 

152 ; +1 


Ajinomoto ! 857 


Aboreom... 3.1 

AE&CL 7 JO 

Anglo Am—— L 11.0 
Anglo Am Gold— 75,5 
AmgioAmProp. 2.6, 
Barlow Rand ...— 8.2 

Buffets- 33.7 

CNA Invest....-...;. 7J0 

Currie Finance— 2.21 


Amnda 


Asa hi Gloss. ; 582 


Canon 

Citizen 

Dalai 

DKBO ....... 


+ 3 


..I 5.07; +0A3 

+ Z 

Drio fonts In .. .. 

.J 33J6! 

— J' 

FSGeduld 

J L 25.751 +0.26 

—22 

Gold Fields SA. 

59.5 ! 


Hlghvejd Eteel. 

4,4 —0.1 

t3 • 

Huiotti 

8.5 i' 


Dai Nippon Ptg~'. 690 J ’*»”"] SSank f ^.SS ,T.— 

Daiwa House....... 41 S J —10 I OK Bazaars...— .J. 17.761 


SWITZBtLAND 


Daiwa Seiko -386 .1 

Ebara -390 *S 

Eisai ‘ 809 I *7 

Fuji Bank. :..| 500 ...... 


Protea Hldgs.: ... 
Rembrant.— .1 
Rannies— .....— 1 
Rust Plat. 


Hoechst— ...... 

Ho each 

Hozlmann |R..._ 

Horton 

Kail und Salz 

Korstadt 


+ or 

May 12 Price — 
Fra. 


Fuji Film....' ; 1.460 Saoe Hlda A 

Fujisawa *1.300 + 30 8A Brews ij 

Fujitsu Fanue..Js,150 — Tiger Oats.-— 7.. 

Green Cross p.160 +20 Unlsso.. — — J 


Mu sulsse. 

Brown Boweri _ 


Hasegawa 674 

HelwaRIEost I 683 


2.60 

9.80 

3.95 

SM 

2.4 

4.4. -0.1 
19 - 

3.45 


BELGIUM/LUXEMBOURG 


Siba-Gaigy 
do (Part Certs) J 


May 12 


! Fripe + or 
I Frt. — 


ARBED 

Banq Int A Lux 
Bekaort B ... . 
dmant GBR .... 

CockeriH 

EBES 

Electrobcl 

Fabrlque Nat.... 

G.B. fnno 

GBL iBruxlu .... 

Gevaort 

Hoboken 

Intercom 

Krodlotbank 

Pan Hldgs 


J 1,352! -14 

.., 4,05Qi 

.. 1.970 *20 
.. 1,535 —20 

iaal -a 

1,665 -5 

,.! 4,165 

,j 2,465. 4 15 

.., 3^70 -a 

..! 1,320| +10 
1,780 +30 

.J 31325' +26- 

1,5 |Q] -10 
J 4,7501 +2G0 
,.| 6.880,' 


Kaufhof 

KHD 

Kloockner 

Krupp... 

Unde 

Lufthansa.... 

MAN 

Mannesman n 

Mercedes Hlg„... 
Metallgese6H.„...| 
Muench Ruck... ' 

Proussag I 

Rh aln west Efaotj 

Rosenthal 

Soherlng 

Slomen...._ 

Thysaon 

Varta-..- 

veba 

Verein-W st,.—. 

Volkswagen i,— ...j 


do (Part Carts)- 
; red It Suisse.—. 

Uoktrowatt. | 

Fischer (Geo>.._. 
Hoff-RoohePtCts 
Hoff Roche 1/10 

Interfood 

Jelmoll 

Landis ft Gyr.. .„ 
Nestle- 


Oor-Buorlla-. I 

Pirelli 

Sondes (B) 

Sander (PtOtai...: 
Schindler (Pt Ota), 

Swissair 1 

Swiss Bank - 

Swiss Relnaos—.l 
Swiss' Volkabk,....i 

Un (onBank 

Wlntarthur..,.,„.J 

Zurich Ins. J 


Hitachi- -J 669 

Hitachi Kokl 615 

Honda 751 

Housefood ....... 1,030 

Hoya 711 

ItehlQ 304 

to-Ham 393 

Ito-Yokado - 827 

JACCS 450 

JAI 2.310 

Jusco 580 

Kajima.-- 36a. 

Kao Soap..., 620 

Kashlyama ... 825 

Kikkoman— 398 

Kirin 434 

KoKv yo 690. 

Komatsu 480 

Komatsu Plft 428 

Konlahrolku . BOB 


Financial Rand USS0.S0* 
(Discount of IS*%) 


BRAZIL 


Price +or 
Cruz — 


Aeslta— 

Banco Brasil—. 
Belgo Min— ... 


36a .[LogabAmsr-.— : 

BIO —1- f PetTObraa PP™..., 


1.65 

14^0 +OJfl 

*,10 

7jOO +0.10 
10,90 +0.» 


PetTObraa PP— ... 10.00/ +0. » 

Souza Cruz.....—. 10.50] — 0.*° 

UnfpPE. : - - iB.od 

Vale Rio Docs— 16.60: — O.K 


Turnover. Cr. 20.964m.' 
Vok/rne:' i.SOlm.- . 
Source; Rio ds Janeiro SE. 


. NOTES— Prices on this page an sa quoted on. "the 
individual exchanges end are last traded prices. dDeaHnpa 
suspanded. xd Ex dividend, xc E* scrip Issue, xr Ex riflhta. 






•!2HS AN 


■ I LIU 




, ■ f/'M 





■ 1 

1 -.b. 

■'S. 




... - •. i 










MiWilwr -.1 




N, 

v,. 

Oom- ^Th.'f 

*ut WSi 

; <yt 


:**». ,! V 
■^iSi :'- 'C 

£*5$: 

■ 1 c iA J. * 

t?" ,-.■ Vv 
; -V-V- aj? 1 

, - 'Sio.- 

,, V X' 

*'£**«! 
e, :»- 1 

; -4 

Ko„ ? * 

T: , s iiKs ^ 

M 

5KB 

f: »,. _ "K p 

viSi* 

- f - a 3. ■ 




*»■ 

3 *<■/ ■•* «*. 

'■ Itrjj. 

.... '• *> HT> 

?'■’ ,v V '®- 




• r ‘. Ben •■ 
' -tv*. L 
’ .. • 


\_ ' t si \i 




ww.l I 


• O’ 


Financial Times Thursday May 13 19S2 

Companies and Markets LONDON STOCK EXCHANGE 




Markets make progress as hopes of peaceful solution 
to Falklands crisis revive— Share index up 5.8 


RECENT ISSUES 


EQUITIES 


Account Dealing Dates 

Option 

•First Dl 1 clara- Last Account 
Dealings liens Dealings Day 
Apr 19 Apr2« Apr 29 May Ml 
Apr 30 May 13 May H May 21 
May l June 3 Jane 4 Janet* 
• “ Nsw nirw ~ mgef tfka 

ptae« from 9 om two business days 
earlier. 

The slightly more hopeful Role 
in Mr Francis Pym's statement 
regarding the nepooation, to 
bnrir; the Falkland iriunds crisis 
M d peaceful close led to a re. 
viva! r.f eaULiuiis n^Umisni its 
L ondon >*roek murker yesterday. 

Dniisdi Fun. -is and loading 
shares russHinded to ihe claiRge 
in sentiment ;»nd pj'-nrdod iisetu; 

nn copes that rcrenl 
encouragiag vennomic pninlen, 
shrouded by the Falkland* dis- 

pule, might come to the »»ire 
Iieakrs opened leading isdus- 
trial* Figher, but early iiuyin^ 
j nlcr*.-! proved to be insuffiifieR! 
to sustained prices at ibv 
enhanced levels. A sub.wiuent 
rojcuon. however, proved short- 
lived as peace hopes revived. 

The FT TlQ-.ihare index, up 65 
at the 10 am calculation, eased 
hack to slww a rise of only 3.3 
an hour larer, but rallied tn 
record :» gain of 7.5 at l pm 
before tailing off to close 5.S 
higher on. bihnce at a new 1SS2 
peak of SflO.'J. Glaxo aafiin 
fra lured despite the company's 
si lenient that it had not revised 
estimates of the launching date 
ip. tiio l\S. for its Zantac drug 
Overall conditions were ex- 
tremely quiet and it was left 
:h panics making trading 
statements l«.» provide occasional 
feuiuroi. 


Apart from t5ie revival of 
o;>:imr,:n about the 3-'a’k!und 
situation, Ci:!!-edge*ti sceuriDcs 
vere cncauracod by firmness in 
Merlins 5 wins t oath the TJ.S. 
dof-ar -rid the wider interna- 
IiwllI currencies. Easier contiJ- 
liflia In UK inc.v y market rates 
also helped to bolster hopes 
about lower mieri-tf. ntrs. 

Sbort-dmed sinekr, made pro- 
;;rpss with ihu emphasis on kr*' 
coupon issues which recorded 
oiiovc average c^iendin-i 

!■-. while similar rifies were 
seen in the Inter mat unties The. 

Government Serunr.er. index, up 

fl-»7 at fili.41. regyio-.'d Ua IrvH 
pre.r »o the o' the K:>!>- 

laniis and ^ nyly 0-14 i'^ 

1‘j 33 high m-urdi-u r.r. M arris 

Royals dip & rally 

l>ripi?e report ms first- quarter 
figures at the hcitoin end of mar* 
l'**’ wisb ihe loss of 

£•■ ; it. I „ reply d::*. 1 rr» deterioratir.s 
Uiv underwriting figures. Royals 
rallied from or dull level 
of 237p i*j close up on balance 
at 346p Commcrirai talon ro>e 
a iimilar .^rxur.t So I37p un 
further consider:;'. on **f t!ie fir?*- 

quarter result.''. innr.»jn<<ed tm 
Tuesday, while Eagle Star 
hardened a couple «f penre to 
:K5p. Among Lloyds hrukens. 
C. E. Death at traded buyers and 
tcuchnd 350p before efosisi; 13 
up Lt 345p; :hc preliminary re- 
sults gr? scheduled for next 
Tuesday Bren mall Beard edged 
'Award 2 lo 31p on the interim 

profits recovery. 

'ten wed l:->pes of a d.plrunaiic 
Siiluimn to The Argentine crisis 
induced a smart rally in the 


Contracting, Gonstrcetion 

F.T. -Actuaries index 


FINANCIAL TIMES STOCK INDICES 


FiX«d iRtetest 69.7a 69.37 69.42 68.93 66.92 66.26 69.13 

Industrial Ord. 590.9 563.1 390.5 563. S 576.9 575.4 551.3 

Cold Mines ' . . ‘ 229.8 226.0 22S.8 231.4 231.2 236 .3 3?2J 

Ord. Die. Yield ... 5.26 S.JS 5.30 5.37 5.42 S.S4 S.96 

Earnings, Yld.% (lull' I 11.04 11.15 li.OB 11.54 11.52 11.52 11.73 

P'E Ratio ft»cf- fi.. . 11.16 11.25 11.12 11.05 10.85 10.67 10.68 

Total bargains .. . . 18,212 18,334' 18.535 16,517 16,210 16,049 21,065 

Equity turnover I'm. — 147.99 148.90 155.50 154.59 150.06 127.455 
Equity bargains - - 14,951 14,191 '.5,205 12.675 12.636 15,624 

10 am -131 G. 11 an £56.4. Naan £89.5. t pm 592.6. 

2 pm 592 4 3 pm 331.4. 

3a>s 100 Ge«. Sacs. 16 *0.26. F>«ed l»t. 1328. industrial Ord. 
1/7/15. Goid Mmos 12/3/56. 5E Acuv.ry 1974. 

Latest Indox 01-246 8026. 

•Nil -1C 35. 


rtajur clearing hank'. Lloyd i 
picked up ift to •llOfi. a/N‘r 
while Barclays put on S to 46Sp. 
' -£ter 4 Tup. Buying m amicip;>- 
uuo of today's .uinunl results 
left Bank of Ireland -0 bHter 
ill l-’^Sp. while Allied Irish 
moved up -1 to s-ip m sympathy. 
Discount Houses continued firm 
with improvements of S and 1U 
n*apcc lively seen » Alexanders, 
22Sp. and Ester Ryder, J35p. 
’J cr chant hanks encountered 
selective support: Hill Samuel 
pur oil 5 tu Mkip as did Gushics* 
Feat, to 75p. 

Leading Breweries followed 
the general trend and scttlrd 
vith Miiali gains. Eiscwberc. 
Amal^amaLeU Distilled firmed 3 
to Rip 

Leading Buildings attracted 
reasonable i-upport and Blue 
Circle rose ti tu S02p with BPB 
Industries putting on 4 tn a ISS2 
peak of 44ifp- In enntrasl. Costain 
shed 10 lu l»0Op with the 
De' erred S down at -4dp on 
seccod ihuucbis about Uni pre- 
liminary results, 
liuiinary results. Outside of the 
leaders. C'arron improved 2 to 
liS?t foiovnn;; the sale of a suh- 
iHilaj-y. while revived demand 
in a thin market lilted Rrccdoii 
and Cloud Hill Lime Works 15 
lu 161fp. Baggi-ridgi- Brick added 
a penny in fifip despite lower 
interim profits and the dividend 
cut. while Aherchaw Cement 
gained 5 tn 375 p in response to 
the chairman's annual statement. 
Beiluay held ai I00p, (he board's 
confident statement on current 
trading outweighing the poor 
half-year profits. 

Chemicals had a generally firm 


preliminary results from Lee 
Cooper saw the shares ease to 
l'27p before closing 3 down at 
I Slip Bamhcr> came up. offer 
and shed ‘1 tn :’>2p, but Ellis and 
Goldstein hardened a penny to 
L'5p, the latter following the re- 
sult;. Polly Peck met revived 
speculative support and rose 15 
lu JTiip and Harris Queens way 
appreciated 1? to 190p. 

Buyers returned for leading 
Electricals on defence spending 
hopes but closing levels were 
well below the day's best. 
IMessey touched 437p before 
finishing 5 up al 4^Sp. while GEC 
ruse 5 to S93p. after 895p. Thorn 
EMI put on S to 44 Op, after 445 p, 
.ind Baca] appreciated 5 to 423 p 
Investment support lifted Cable 
aud Wireless 6 to 2Slp and En fo- 
ld erro revived with an improvi*- 
mcni or 8 to 433p. United 
Scientific, on the other hand, 
dropped to 355p following profit- 
taking in the wake of the good 
interim results before rallying 
to clnsp only S lower on balance 
at 370p. 

Interest in the Engineering 
sector waned considerably and 
features were hard to find. Re- 
(li-ctmg recovery hopes in the 
wake of the poor results, John 
Folkr* Hefo edged up a penny 
to ISp. Chamberlin and Hill 
put on 3 to *!7]> as did Haden, 
to IPSp, while Pegler-Halter.fey 
gained -! to 214p. Among the 
r.uxrd lea den, CRN hardened a 
couple of pence to 169p. 

Food Retailers, depressed re- 
cently by tears of another price 
war. staged a modest rally. J. 
Saiushury were actively traded 
and rose IQ to 610p. British 


appearance. 1C1 closing 4 dearer Sugar met late support and 


HIGHS AND LOWS 


S.E. ACTIVITY 


Since Compitet'n 
High Low . 


| Gcvt. Seca . 

69.55 

.J3:Si 

61.89 

iti'li 

227.4 

. •3.1JSS1 

49. JB 

■s.; n. 

Gilt Edged 
Barasuns.. 
Equities 

170.6. 

177.1 

Fixed Int. .. 

69.78 

62.79 

150.4 

50.53 

Rirgnln* 

963 

91.9 

It'.ai 

iT,\. 

,20.114? 

<i ! ?b; 

Vaue .... 

299.1 

301.0 

y Ind. Ord .. . 

S90.9 
r 12 c< 

618.2 

li'li 

597.3 49.4 

iM 4 SI) (Kl«, 

5 day Avrge. 
Gilt-Edged 
Bargains.. 

169.5 

165.8 

H Gala Minas . 

202.0 

209.2 

5S8.9 

43 5 

Equities 

87.7 


g 

ii 1. 


{323,50, 


Bargains... 

85.4 

i 




»■— 

Value 

283 .B 

262.3 


at 326p, after 31!Sp, and FI sons 
adding a like amount to 322p. 
British Tar Products, recom- 
mended as a chart buy, touched 
a 1982 peak cf 55p before settling 
a net 6 up at 53p. 

Woolworths easier 

Wool worths spoilt an otherwise. 
quiet 1 * firm performance by the 
Store majora, casLag to 46p be^ 

ore closing a penny down on 
balance at 47p following the 
£2.3m tirst-quaiter loss. Mark)* 
and Spencer, lii5p, House of 
Fraser, 158?. and Habitat, 146p. 
all improved 4, while Burton put 
on 3 to 135p as did Gussies *' A,” 
503p. Elsewhere, disappointing 


gained 8 to 49Sp. Nurdln and 
Peacock touched 150p before 
closing 2 dearer on balance at 
14 Sp following the annual re- 
sults. 

Grand Metropolitan firmed 4 
to 220p awaiting tomorrow's 
interim results. 

Glaxo up again 

Buyers remained particularly 
inlcrerted in Glaxo on hopes that 
the grouji may soon gain 
approval in market its Zantac 
unli-ulcer drug in the U.S. and 
the shares rose 11 for a rise on 
the week so far of 41 to 674 p. 
Other miscellaneous industrials . 
Readers traded steady to firm 


FT-ACTUARIES SHARE INDICES 

These Indices are the joint conipHafion of the Financial Times, the Institute of Actuates 

and the Faculty of Achates 


equity groups 
& SUB-SECTIONS 


Wed May 12 1932 


& bUS-bHrllUKd fit ten EO. 

Zarrxvf, ft*. P/E 

■" t s. x? ^ ss r t 


TtefS Vter 
Way a* 

6 (Zfpox-) 


Index Index 
No. No. 


1 CAPITAL GOODS (208) 

2 BuWn9 Materials (23) 

3 Cortracling, ConslnicUon <28) 

4 Electricals 131) 

5 Engine e r ^ Contractors rK» 

6 Mechanical Engineering (67) 

8 Metaband Metal Fcrtring til) 

9 Motors 120). — - 

10 Other Industrial Materials <1® 

21 CONSUMER GROUP (201) 

22 Bnewen and DfcUHers ( 21 ) — 

25 Food Mawtaduring (22) 

26 Food Retailing tl4» 

27 Health and Household Products 18> - 

29 Leisure (24) 

32 Newspapers, Piddretring 02 ) 

33 Packaging and Paper 114) — 

34 Stores (45) 

35 Textiles (23) 

36 Tobaccos (3) 

39 Other Consumer (15) 

41 OTHER CROUPS (78) 

42 Chemicals (16) — 

44 Office Equipment (4) 

45 Shipping a«j Transport (13) w 

46 MsceHanems (45) 

49 UflHJSTBtAL GROUP (487).-^ 
51 mis (13)—- — 

59 500 SHARE IMPEX aasasoa 

.61 FINANCIAL GROUP PI7) 

62 

63 Discount Hoses 19) — — 

65 Insurance (Life) (9) 

66 insurance (Conpodtcl HO). — 

67 insurance Brokers (7) 

68 Merchant 3aftsfl2f 

69 Property 

70 Other Financi al (15! 

71 investment TnKts (11 21 — 

81 Mining Finance (A) — 

91 Pew-seas Tr«fr »< (17) 

qf ALL-SHARE INDEX C750)_ 


394.80 +02 
„ 347.86 +02 

„ 63-VM —0.6 

... 1407.00 +05 
_ 501.89 +03 
... 206.66 -03 
_ 169.66 +05 
97.69 +0.4 
_ 389.16 +03 
M 314.49 +0.9 
... 31536 +13 
... 27731 +0.1 
... 591.85 +0.7 
_ 467.46 +13 
_ 453 96| +L0 


_ 534.951 +03 
_ 143.71 -03 
289.12 +13 
_ 187 62 +1.4 
^ 34457 +13 
_ 293.03 +02 
261.91 +30 
^ 34334 +12 
31454 -05 
„ 583.94 +1.0 
- 339.47 +15 

I 334.73 +0.7 
Z 753.04 +1.6 
J 368.77 + 0 .S 
252.63 +0.7 
J Z72.67 +L9 
>. 23652 +02 

.. 2 fi" 0 e —04 
... 158.96 +0.4 
... 496.51 +03 
14632 +0.9 
I 43043 +05 
173.09 -02 
” 30555 +0-4 
... 2C9.42 -03 
_ 371.06 -11 
I 33823 +0 ,7 


fixed interest 


4.30 1334 
5.07 8.93 

424 065 

230 19-21 
659 9.05 

550 1151 ! 

7.00 1250 ! 

6.98 — 

5.«5 1350 . 
5 42 957 ! 

630 007 

6.72 7.00 

359 1265 
3.46 15.69 
5.03 1244 
SJfi 956 
70S 757 

4.75 1293 
550 13.90 

7.98 521 

515 — 

6.02 9.19 

6,74 9.15 

752 066 

650 651 

450 10-97 

5.01 10.69 

7.72 539 

545 922 

653 — 

759 285 

953 — 

622 - 
091 - 

5.22 12.17 

5.72 — 

355 2650 
6.60 636 

S29 - 

6.73 040 

857 065 

559 - 


AVERAGE GROSS 
rebehptkm YIELDS 


Tue Yrer 
May ». 
11 UnnD 


PWC£ 

INDICES 

Wed 

May 

12 

OS's 

date 

% 

Tue 

3 

today 

a# a*, 
1982 
to date 

Z 

2 

3 

4 

5 

6 

Brifidi 6o*ema« 

Low 5 ye»s. 

Canons 15 yens- 

25 years. 
Medium 5 ytfrs. 

Codtare 15 )W- 

25 year- 

BrftU fiffirenBoert 

31175 

+037 

11135 

— 

4S 


11234 

+OM 

11137 

— 

443 

7 

msJi 5 vn 

0wrI5je»5 

115A9 

+074 

U4A5 

— 

522 

B 

9 

louom ff u " 

2Syft». 

imfartWs— - 

11*58 

+081 

11062 

— 

6.07 

10 

Irratenatfcs 

AH Stocks — 

11289 

+Ofil 

13221 


418 

11 

De* 0 Loam S year. 

15 yew. 

OebeafartSfiLpm 

8825 

+0.44 

8736 

— 

3.96 

13 

25 jean 


MS 

+024 

6433 

— 

275 

«1 



~^38 I 1552 I 14.76 


TTPr rfW- 1 643BI+SM91 - ■ ■■ 


NEW HIGHS AND 
LOWS FOR 1982 

The (otlewifig ttuOU(loo$ In fh# Share 
Intarmation Service reatevdav ittaioed new 
Highs and Lows for 1982. 

NSW HIGHS (151) 

BRITISH FUNDS IS2) 

INT. BANK AND Q5CAS GVT 
Sfi.a ISSUES <4, 
CORPORATION LOANS (SI 
LOANS ill 
Foreign con dll mj 
AMERICANS <2, 

BEERS <91 
buildlncs |£| 

CHEMICALS (Si 
DRAPFRY AND STORES (B« 
ELECTRICALS «8i 
ENGINEERING (Si 
INDUSTRIALS (21) 
INSURANCE <21 
LEISURE (2> 

MOTORS )2) 

NEWSPAPERS IS) 

PAPER Ul 
TEXTILES IS) 

TCUST5 <91 
„ OIL AND GAS 111 
OVERSEAS TRADERS 11) 

MINES <11 

NEW LOWS (21) 

_ _ _ BUILDINGS ill 

Crouch Group 

. STORES <11 
Bjmbcri Staves 

ELECTRICALS II) 

Chloiide Group 

ENGINEERING f2l 
Mom Eng _ nohitison iT.) 

FOODS 111 

Pvfce Hiags 

INDUSTRIALS (Si 
Be L.i Rur Lew and Sonar 

E, Permit Intnl OakwooO 

K-jrsROW (A.) 

LEISURE 111 

Trident TV A 

MOTORS lit 

Sunn Group 

pr o*e«rr m 

Lon Shoo Prop 6';arCn» 1984 
TRUSTS ill 

■ Ennltah Aisril MaledN ln*m 

KellOcL 

_ OVERSEAS TRADERS ll) 

Gill and DuBua 

RUBBERS (1) 

Samgang Java 

TEAS (11 

McLeod Runet 

MINES <1) 

Leilia 


OPTIONS 

Fir«t Last Last For 
Deal- Pr.ll- Dcrlara- Settle- 
fr^s Ings (Ion ment 
’lav Ul iWsy2I Aug 12 Aug £3 
FlrvSt June 11 Sept 2 Sept U 
June 14 June 25 Sept 1C Sepl27 
For rate indicatimis see end of 
Share lujormation Sen-ice 
Slocks tn attract money for 
the /’.ill included Trident TV 
A. Pennine Commercial. Lam- 
bert and llowarth, Swire Pacific 
A. Imperial Group. Premier 
Consolidated, Rothmans, CDS, 
Burns- Anderson and Inler-Citr. , 
No puts were reported but 
double opi tofts were arranged 
in Imperial Group, Ultramar, 
Associated Paper and Inter- 
City. 

RISES AND FALLS 
YESTERDAY 

fl'tM Fjlls S.imd 
British Funds . . 89 0 4 

C6nW9. Oom. and 

Foreign Bands ... 16 5 57 

Indualriata 276 189 881 

Financial & Pi-d|». 139 59 310 

Ollg 45 9 S3 

Plantations 0 6 17 

MbH 47 23 89 

Othara 99 18 3« 


with Beecham i up at 279p. 
after -Slip, and Turner and 
Newall closing 3 dearer at 6Sp. 
Trafalgar House put on 3 to 136? 
in response to the satisfactory 
half-year figures. Elsewhere, 
Cara rex advanced 6 to 57p on 
The announcement that Hawley 
Croup has increased its stake in 
the company to just over 20 per 
cent. 

luter-Oty Investments touched 
55? before closing a net 2j 
higher at 55p on speculative buy- 
ing fuelled by talk of a bid from 
)be Investment Group, 

which already own. a near-26 
Dcr eenr stiike in the company. 
Dc-pite the fir, ill dintdesd re due - 
t:nn and 2S per c*.*a: contraction 
in i-nr.ua! earrings, European 
Ferries firmed 3 :n Sin, while 
details of the profits recovery 
lifted Francis Industries 4 to 
74p. Speculative support in a 

thtn market helped Ropner to 
jump 16 to 138p and the “A" 
.13 to 130p. while Portals 
attracted late Support and 
advanced 30 to a30p. Booker 
McCooneU improved 3 to 74? nn 
revived speculative buying and 
Rath and Portland added 3 to 
S5n. 

Down 4 nn Tuesday on 
disappointment with the pre- 
liminary results. Barr and 
Wallace Arnold Trust A rallied 
5 to 52p. Elsewhere in the 
Leisure sector, revived demand 
in a thin market lifted Norton 
and Wripdit 5 tn 40?. 

Recently firm on hopes of in- 
creased Government defence 
spending, aerospace issues took 
a breather yesterday. Dowty 
losing fi to 13‘2p and Flight Re- 
fueling 12 to 2SS?. Reliant Motor 
improved li to l2;p i.i response 
to the satirfaetnry interim re- 
sults. Among Motor Distributors. 
British Car Auctions added li 
to 95p on U.S. acquisition news, 
while Frank G. Gates touched 
6'jp before closing ‘2 dearer on 
balance at 61p following the 
anuat results and 25 per cent 
dividend Increase. In contrast, 
Jessups shed li to 2S>p on 
disappointment with the half- 
yearly results, while Dorada lost 
a penny to 33p despite the chair- 
man's optimistic remarks at the 
annual meeting. 

In Paper/Printings. Jefferson 
Sraurfitt closed 4 up at 63?. after 
t»5p. following the good pre- 
liminary results. Newspapers 
had United 7 dearer 2 t 167p. 

Oils better 

Leading Oils made a firmer 
showing, helped by the rally in 
energy’ stocks on WaLJ Street, 
British Petroleum and Shell 
adding 6 apiece to 318p and 
420p respectively. Ultramar 
hardened 5 to 4fl0p awaiting to- 
day’s annual meeting and first- 
miarter figures. ORE, dealt in 
the Unlisted Securities Market, 
gained 7 to 197p on speculative 
buying. Elsewhere, Ranger OH 
put on 22 for a three-day spurt 
of SO to 360n in Transatlantic 
influences, but Global Natural 
Resources, another thin market, 
relinquished 40 to 750p. 

Dealings were temporarily 
suspended in Finance and In- 
dustrial Trust at 26p at the re- 
quest of the company pending 
an announcement. Among 
Financials, Akroyd and 


APPOINTMENTS 


Smithers. still benefiting from 
the half-yearly results, unproved 
4 further to 215p 

South African Industrials 
were featured by renewed weak- 
ness is Greafermaos A which 
fell 20 to 27Dp. SJV. Breweries, 
however, hardened a few pence 
to 196p on tbe results. 

Tobaccos featured Rothmans 
which, on revived speculative in- 
terest. put on 4 to 101p. 

Among Textiies, Coats Patous 
responded to the excellent pre- 
liminary results with ?- gain of 
4 to 70s. Gaskell Broadloom 
added 2 to 44p despite ihe lower 
annual profits, while Bulmer and 
Ltunb out on a penny to 43p 
following the preliminary re- 
sults. 

Golds firmer 

A strong performance bv the 

Financial Rand coupled with the 

general steadiness of precious 
and hase-metal prices 
encouraged minor gains in 
mining markets. 

Golds mirrored the Rand rate 
and heavyweights responded 
with gains ranging to J as in 
St Helena. 121. while rises of 
around • point were common to 
Southvaal, £111. Vaal Beefs. 
£241, and President Stern, £Uj. 
In the median: and lower-priced , 
stocks. Donmfontein rose 11 to 
733p. Harmony a like amount to 
4SSp and Unise! 4 to 3S0p. 

The Gold Mtnea index re- 
couped 3.S to 2295. while the I 
bullion price closed a ret 25 
cents easier at 3332. having 
traded around $334 in early 
dealings. I 

Financials continued to reflect | 
movement!;' in metal prices end 
the tone of UK equities. London- 
based issues showed Jittie 
change although RTZ managed a 
gain of 2 to 440?. 

In South African Financials, De 
Beers attracted good support 1 
and rose 7 to 220?, while Gencor 
added 25 to 775p and UC Invest- 
ments 20 to 440?. Middle Wtrs. 
dipped 5 to 455 p following the 
proposed closure of the Prieska 
mine in the North West Cape. 

Leading Australian issues 
made further progress following 
further sizeable sunporr from the 
Far East. Gold Mines of 
Kaigoorlie advanced 10 to 230p. 
P»ko-Wallsend 4 to 2S0p and 
CR.A 2 to a year's high of 192?. 

In oil and gas issues. Strata 
oil improved 2 tn 25p on news 
of a l.Sra cubic feet a day gas 
flow from the Woods da No. 6 
appraisal well in the Perth 
Basin. Santos moved up S to 
21 Op and Woodside 2 to 55p. 

Of the 2.625 Traded Option 
contracts completed yesterday, 
nearly 42 per cent were done 
in Imperial, comprising 727 calls 
and 368 puts. 

HERON MOTOR 

The scheme of arrangement 
whereby Heron Motor Holdings 
acquires all the issued ordinary 
it does not already own in 
Heron Motor Group has been 
sanctioned by the Court of 
Session. The srheme has become 
fully effective and the considera- 
tion due to minority share- 
holders will be dispatched by 
May IS. 


:§= 3 §«i: 1089 i 

* a « High! Low; 

rP. 14(6 169 140 ! 
.F.P. J5* ' 30 , M . 
.F.P.21.S 109 )Q5 . 
F.P. 4:6 375 293 : 
F.P.28 S . 62 s 60 
F.P. - .136 1 122 ; 
.F.P.:3B.-3 148 .140 | 

; - - , it : w .. 

!F.P.;i4i3 250 i24S ’ 
F.P.: - 273 i267 |> 
‘FA! 7,5 1 154 i!20 
F.P.' - . SO : 30 ’ 
F.P. 23:5 .241 136 , 
F.P.' — : 90 | 70 .! 


AIM Group 10p .... ...,169 
GsmbrtMi 6 Gon.vip 50 
;*Cau Group 10p.... 107 
■i-Cont. Miorowavo ..370 
■jDaBrattiAndrej lOp 61 

'Dew iGaorgai.. 127 

i^Dniek Hldga. ..... .148 

.iGripInvOptionCrta 17 
'*Io Technology -....;247 

^Jebsens Drilling.... 266 

'{.Leisure Indi. 122 

’Oiprey Aasats 1 30 

standard See* |135 

.Zambia cons epDOK, <0 


, ; ft a,3£ ! S2:j5 

■+ar. JS° ES-.8£ ; SS 

- M ST=Ir**-:*S? 

! bd5.7&T« : 4.9j lBj 

ud2.S 2^8. 5JS I&.4 

65.25 3.9 2X1,15.7 

VI 62,5 2.2 5.9|IL6 

q5.7 : 4.0 6.4: &£ 

; 62.3 | 2.5' 2.2 25.7 


. 617.5 2.3i 9.4 6JS 
, 65.0 ' 2.6' 5.9 8£ 
. F1.4 i — « 6.7 
b2.8 ' 1.8: 2^,484 


Issue = o 
price av 

£ : Srt 

. < c. 

*99.595 £25 
•200 CIO 
M F.P. 
ft 00 F.P. 
•100 F.P. 

: too f.p. 
rxoo f.p. 

'10D F.P. 
',107 F.P. 


FIXED INTEREST STOCKS 


5 ST) . wo<=* o~ 

High. Low' 

14.7 ; 25 I 211? Cred. Fonoier de Franee l«i“» Lon JOB?; 24 U 
2/7 12U 131c Eaai Anglia Water 9^ Bed. Prf. 1987.. 12U. 

- -136 236 i First Nat, 12? pc Conv. Uni. Ln. 1987.. lab 

- 39 ' 39 : Grt. N'rth'n Inv. 4pc Net Cum. Prf- £1 « 1 — - 

; _ 45 ; 45 Do. 4.7pc Net Cum. Prf.il 45 , 

- 10QH. 99*9 Nationwide Bdg. Soc. 14V, (14:5:63;. 1004- ir 

- 1001 s; 995 » Do. 1447.I4.-4 B3> JS2I* “}* 

- XOOTslOO^ Do. 14i:»f25 4S3l 2004—4 

.29,4 1131? 109 >c Queens MOBt iota Cnv.'a9.91 ..1134, •— 


"RIGHTS” OFFERS 


■S&. Latest 

Issue = “ . Ron unc. 19B2 1 

price =5 dale , — . Slock 

P < a ♦ ■ High . Low 

10 fT. 27-4 28 S 134 15 Ansbaeher 'H.< 5p .... 

170 F.P. 15 'S 24>8 • 190 , 280 Bank Leuml (UK, £1. 

125 F.P. 2 1*4 26:5 157 135 Bearer .0. H.l 10p. .. 

ASl ■ HU 24.5 7.6 t$4pff» J-'fpm flond Corp 

135 Nil - — 44pm 36pm Carless Cape) 10p..„ 


!|Sa !+« 

’. 114! — 1. 

185 

155 »c 
9‘fpm .. ... 
« 2 pm t 1 * 


30 

F.P. 29:3 

10:5 

60 

50 First CaatJa lOp 

56 -2 

20 

F.P. 3Q.4 

2 B.S 

86 

42 Fisner 1 A .1 


5 

F.P. 10 5 

216 

6 

S Grovebell <Sp> 

- S ' 

500 

Nil 20:5 

18. S 

90pm 

80pm Hammereon Prop 

80pm —3 

500 

Nil - 


75pm 

35pm Do. A. 

3Spm —7 

120 

F.P. 7i5 

4:6 

169 

144 Ulloy iF.J.C.i 

168 .-I 

145 

F.P. 12:5 

7,6 

187 

176 Lov/ iWm.i 20p 

182 +2 

16 

Nil 215 

4 6 

14pm 

4pm Nortri Kalgun 

6 pm + T 

6 

F.P. 19.4 

21 5 

a 

6 i; Platignum Sp 

71; - 

37 

F.P. 29.4 27:5 

291; 

26 1 » Queens Moat . 


95 

F.P. 16.4 

4:6 

107 

99 Riley Leisure 

106 — 

170 

Nil 14i5 

11:6 

57pm 4Spm Steal Bros 

57pm +2 

10 

F.P. 24,3 

23 4 

121 ; 

101; Sturia lop 

12 — it 

133 

F.P. 10 .5 

10:6 

160 : 

146 Vickers i£l*.... 

• 156 1 . 


Renunciation date usually last day tor dealing IreB ol stamp duty, b Figures 
based on prospectus estimate, d Dividend rata psid or payable on pan "of 
capital: cover based on dividend on full capital, g Assumed dividend and yield, 
r Indicated dividend: cover relates to previous dividend. P/E ratio based on latest 
annual sarnmRs. u Forecast dividend: cover based on previous ycat's earninqs; 
F Dividend end yield based on prospectus or other official estimates for 1982; 
0 Gross. T Figures assumed, o Figures or rauQit awaited, t Cover allows (or 
conversion of shares not now ranking for dividend or ranking only lor restricted 
dividends. § Placing price, p Penco unless otherwise indicated, f Issued by 
tender. || Offered to holders of ordinary shares its e "rights.” ••Issued by wap OT 
capitalisation. §5 Remiroducod. *.1 Issued in connection with reorganisatiotr, 
merger or take-over. "J Introduction. □ Issued to former preference holders 
■ Allotment lenefs (or lully-paid). • Piovislonal or partly-paid allotment letters 
* With tf.-arr.tnis tf P»nl.ng* n— fer special Rule. Unilateral Securities 
Market, tt London Luting. i Effective issue price alter scrip, t Formerly 
dealt in under Rule 163(2)(e). *t Unit comormng five ordinary and thf?a 
Cap. shares. A Issued tree as an entitlement to ordinary holders. i /. 


ACTIVE STOCKS / 

Above Bveraga activity was noted in Ihe following stocks yesterday 


Stock 

BAT industries 

Barclays Bank 

British Aerospace ... 
Bntuh Tar Products 

Coats Patons 

European Ferries ... 


TUESDAY’S ACTIVE STOCKS 


Closing 

price 

Day's 

change 

Stock 

Closing 

price 

pence 

Day* 

changfe 

462 

+ 4 

Heath (C. E.) 

... 345 


468 

- 1 - 8 

Hogg Robinson 

109 

— r 

216 

+ 2 

Imperial Group 

98 

+ t-' 

53 

+ 6 

Midland Bank 

332 


70 

+ 4 

Trafalgar Hou 9 e 

136 

+ 3- 

81 

+ 3 

United Scientific .. 

.. 370 

“ 8 ,, 


Based on bargains recorded in S.E. Official Lis: 
Tuesday's 7 


Tuesday' 



price 

price 

Day's 


pnee 

price' 

Day'**. 

Stock 

changes penes 

change 

Slock 

changes pence 

changfl. 

G‘ 2 JC 0 

28 

663 

+ 18 

Sm.ih & Neph. 

11 

128 

— 4? 

GEC 

14 

888 

- 4 

BAT industries 

10 

45B 

-122 

RTZ 

13 

438 

-16 

Barclays Bank . 

10 

460 


BICC 

12 

340 

- 7 

Ferranti 

10 

720 


ICI 

11 

322 

- 4 

Grind Mai. ... 

10 

216 

- 4" 


11 

423 

- 5 

Mks. & Spncr. 

10 

161 

- 3 - 

Shall Transport 

11 

414 

- 6 

Unilever 

10 

620 

- 3: 


Marketing director 
for BP Oil 


•Corrected fibres Sir May 7. 


Totals 711 306 1,445 


Sir John Hawkshaw has been 
appointed markeung director of 
Bi J OIL. reli.-iing and marketing 
arm of Bp’s UK operations. He 
succeeds Mr David Simon who 
has been a ppointed deputy 
managing director of BP Oil 
International. Mr Hawkshaw is 
currently general manager, 
corporate control department at 
BP s City headquarters. 

★ 

Mr Laden S. Wigdor has been 
appointed a consultant to 
LAZARD BROTHERS A*D CO. 
He is a former deputy director 
general of the CBI and has till 
recently been a director of RIT. 
+ 

BURNETT AND HALLAM- 
SHIRki HOLDINGS has 
appointed filr T. Lowe as chief 
executive of Anglo Overseas 
Construction Crpn, parent com- 
pany of B and H's property 
division, m succession to Mr G. 
Helsby, Burnett and Hailam- 
shire's chairman. Mr Lowe, who 
was joint managing director of 
Anglo, will continue with his 
responsibility for property de- 
velopment within the division, 
and while continuing as chair- 
man of Hallamshire Industrial 
Estates, a subsidiary of Anglo, 
he wiil relinquish his position 
is managin'; ihreclof. Mr 
Richard Whittaker, a director of 
Hallamshire Industrial Estates, 
lias been appointed managing 
director. 

+ 

Mr R. S. Derbyshire is join- 
ing stockbrokers GILBERT 
ELIOTT as an associate member 
from Monday. May 17. He was 
previously with W. Greenweii 
and Co. 

* 

Mr T. A- Chavasse has been 
appointed managing director of 
ALCAN TRANSPORT PRO- 
DUCTS with responsibility for 
.Alcan BonaJlack operations at 
Norwich. Lancing and Wake- 
field. He succeeds Mr M. R. 
Davenport who is taking up a 
oew position in Alcan Inter- 
national, Montreal. Mr Chava*se 
was mans qinn director of Alcan 
Building Materials. 

* 

Acquisition of LONDON AND 
HULL .MARITIME INSURANCE 
and English and Scottish Mari- 
time and General Insurance 
Company by the French 
insurance Group, Assurances du 
Groupe -de Paris has been com- 
pleted. Both companies will 
remain in membership of the 
Institute of London ' Under- 


writers. The new board is 
Count Geoffroy de Beau corps, 
chairman; Mr Bernard Pottier, 
vice-chairman: Mr Edwin D. 
Rainbow, chief executive; and 
Mr Jean Loup Che nut. Mr 
Jacques Masse port, Mr James 
button. Mr Stephen Tbistlewood 
and Mr Gerard Valia. Other 
companies acquired within Lon- 
don and Hull group are Londuil 
Investments, the underwriting 
agents Montgomerie and Work- 
man, and Aviation Underwriting 
Agents (which is 56 per cent 
owned). 

* 

Mr Malcolm Fan-alt has been 
appointed managing director of 
PREMIER VEHICLE CON- 
TRACTS, and its subsidiary, 
Pianway Vehicle Maintenance. . 

* 

The BRITISH TRANSPORT 
DOCKS BOARD has appointed 
Mr .Brian Harding as docks 
manager at GooSe from June 1. 
He takes over from 31r Dennis. 
Dunn who is to be docks mana- 
ger at Newport. Mr Harding is 
assistant docks manager, 
Cardiff. 

* 

Mr R. S. Skerman, chairman 
of the BRITISH INSURERS' 
EUROPEAN COMMITTEE since 
1972, vriJJ be succeeded at the 
beginning of Senie-nibor ’by Mr ! 

J. C. Franguulis. RISC's deputy | 
chairman for the pa*t three ; 
years, arid genera! manager. 
General Accident Fire and Life 
Assurance Cnrpn. Deputy chair- 
men will be Mr W. N. M. 
Lawrence (a deputy chairman 
of Lloyd’s! and Mr A. G. O’Leary 
(actuary and secretary of the 
Clerical, Medical and General 
Life Assurance Society). 

+ 

Lieutenant General Sir Hugh 
Cunningham, Dr Peter Trier 
and Dr Bill Willetts have been 
appointed to the board of MEL, 
a division of Philips Electronic 
and Associated Industries, as 
□on-executive directors. 

* 

Mr David John Graham has 
rev'cmed as financial director of 
5TUKLA HOLDINGS, due to 
family cnmmitmcMs. Mr Mosbc 
Fochcnbcrg ha* become finan- 
cial director of both the hold- 
ing company and its subsidiaries. 

* 

Mr Yves Ronniero lias joined 
the partnership cf E. D. and F. 
MAN. He )s currently a director 
of E. D. and P. Man and 
E. D. and F. Mas (Sugar)' with 
a specialist experience in the 


the international white sugar 
trade. 

★ 

Mr F. J. Chapman has been 
appointed principal finance 
officer in the EXPORT CREDITS 
GUARANTEE DEPARTMENT 
on promotion to under secretary. 
Ee succeeds Mr 31. G. Stephens, 
who has taken a City posL Mr 
W. J. C. Pbinell. on promotion 
to assistant secretary takes Mr 
Chapman's place as head of 
ECGD’s comprehensive guaran- 
tee buyer division, based in 
Cardiff. 

* 

Mr David Robert Langridge 
has become marketing director 
of the Norcros firm, PAYNE 
PACKAGING. He formerly held 
a similar post with Hygena. 

* 

BSG i SECURITY) has 
appointed 3Ir Peter Gillham to 
its main board as technical 
director. 

+ 

Dr II. Ph. H. Sluijter, general 
manager of the NV Nationale 
Borg Maatschappij, Holland, has 
been appointed chairman of 
CREDIT AND GUARANTEE 
INSURANCE COMPANY in 

CONTRACTS 

£1 .3m work for 
William Davis 

WILLIAM DAVIS of Lru^h- 
bnreugh, has v..'n ccmracl* 
wurth £J.3ni firm local authori- 
ties in 'he ea't Midlands. Tlr* 
ermpany is in cor -tract 44 
dwellings for Uaribv and 
Wigston Bcrciqth Council at 
Fiudcs Lane, Oadby. Leicester: 
to modernise 76 houses fer 
Bmxiowe Bcrcugh Council at 
Nut hall. Nottingham; and make 
good 17 roofs at Groby, Leicester, 
for Hinckley and Boswonii 
Bcrough Council. It has also won 
a contract for £50,142 to build a 
warehouse and offices for 
Eleclrade at Duke Streep 
Lcughhorough. 

■* 

An order worth more than 
Iion.oon has been won bv 
AIENCO UJLYN or Enfield for 
equipment for the “Beryl B" 
Jacket which is beina construc- 
ted by P.GC UIE (UK7. The con- 
tract is for 42 hose bundles 
which will form pari of the 
flotation control system used 
during the up-ending operation 
of the jacket, which is due to 
he positioned over a Subsea 
Template in the summer of 19S3. 

•k 

A glaring contract worth more 
than £90.000 has been - awarded 
to the Bristol branch of JAMES 


succession to Mr J. A. S. JVeave 
who has relinquished the 
position and his directorship 
peodins his retirement .as 
managing director of the Mer- 
cantile and General Reinsurance 
Company. 51r P. J. Howell, 
designate managing director Iff 
the Mercantile and General Re: 
insurance Company, has bw?p 
appointed a director of Credit 
and Guarantee Insurance Coni- 
pany. Mr J. Lock, designate 
general manager of Mercantile 
and General Reinsurance Con*, 
pany, has been appointed alter- 
nate director to Mr Howell. 
Credit and Guarantee Insurance 
is a consortium equally owned 
by: the Mercantile and General 
Reinsurance Company (Pruden- 
tial Corporation): the Dominion 
Insurance Company; NV 
Nationale Borg-Maatschappij: 
and Dansk Kautionsforsikrings- 
Al'.tlesclskab. 

★ 

Mr Clive Thomas has joined 
the board nf DEXTER BRENT 
AND PATERSON. 

★ 

Mr John G. Elliott has been 
appointed a consultant to 
RUDOLF WOLFF FINANCIAL 
SERVICES. 


CLARK EATON. The order is 
for tbe supply and installation 
of around 400 lineal metre s of 
double glazing window willing 
to a telecommunications factory 
at Caldicct in Gwent. Clark 
Eaton will install some S tonnes 
nr paint-finished aluminium and 
fioo sou? re metres uf double 
"larin-’ units. 

+■ 

The Durham County Constabu- 
lary has commissioned GAP’s 
northern branch lo supply -a, 
computer system and network 
for the first phase of a new 
police computer project. CAP 
will supply all equipment and 
software on a full turnkey basis 
including communications equip- 
ment from Racal-MCgo and full 
computer suite preparation 
services. The system is scheduled 
to become operational in the 
autumn of 1SS3 and is worth 
£545,000. 

4r ^ 

A contract worth £162.390 has 
been awarded by Warrington and 
Runcorn Development Corpora- 
Unn to R. M. DOUGLAS CGN- 
1 T-uimoN for the Birch wood 
Gate foothridge. Tim contract 
consists of the construction of~a 
three-span concrete footbridge 
over the Northern Expressway, 
providing the eventual footpath 
link between Gorse Covert, the 
last residential area in the 
Birch wood district of Warring- 
ton New Town, and the Risley 
employment area. 


a sf .1+*. y' 
*■* .a r * c* 





Financial limes Thursday May 13 19S2 


Conpaoies CURRENCIES and iViONEY 

and Markets ' 


.!■' 'I 

-i"'' 


FT UNIT TRUST INFORMATION SERVICE 


Pound improves 


THE POUND SPOT AND FORWARD 


Sterling was firmer against 
most currencies yesterday, under- 
pinned by encouraging economic 
statistics and hopes of an early 
settlement to the Falklands 
crisis. 

The dollar recovered from 
earlier levels having been sold 
initially on further evidence on 
a weakening U.S. economy. Euro- 
dollar rates were marginally 
easier where changed while 
Federal funds were quoted 
higher on technical factors. 

The D-mark remained the 
strongest member of the Euro- 
pean Monetary System yesterday 
followed by the Danish krone. 
Elsewhere the Canadian dollar 
continued to fall as the market 
reacted to a further deterioration 
in the ecenomy. The Canadian 
dollar fell to S0.664 U.S. cents 
from SI .21*. 

STERLING — Trade weighted 
Index 90.4 against 90.5 at noon, 
90.3 at the opening and 90.1 on 
Tuesday (S9.4 six months ago). 
Three-month interbank 13 per 
cent (15:?; per cent six months 
ago). Annual inflation 10.4 per 
cent (II per cent previous 
month) — Sterling opened at 
S1.S430-1.S440 against the dollar 
and touched a hest level of 
S1.S460 before slipping in the 
afternoon to a low of S1.S3T0. 
It closed at S1.S3SO-1.S390. a rise 
of 55 points. Against the D-mark 
it rose to DM 4.1950 from 
DM 4.1-550 and SwFr 3.5350 
from SwFr 3.5025. It was also 
hiBher against the French franc 
at FFr 10.94 from FFr 10.9125. 

DOLLAR — Trade weighted 
Index 111.8 against 111.7 on 
Tuesday and 106.7 six months 
ago. Three-month Treasury hills 
1Z23 per cent (10.50 per cent 
six months ago. Annual inflation 
6.8 per cent <7.7 per cent six 
months ago) — The dollar fell 
to DM 2.2S05 against the D-mark 
although this was some way 
above the day's low of DM 2.2630 
as switching into D-marks from 
dollars abated. Yesterday’s close 


was only slightly down from 
Tuesday's level of DM 2.2S25. It 
rose against the Swiss franc to 
SwFr 1.9250 from SwFr 1.9090 
and Y233.5 from Y232.75. 

D-MARK — EMS member 
(strongest). Trade weighted 
index unchanged at 12S.5 and 
j 23 i» six months ago. Three- 
month interbank 9.125 per cent 
(11.30 per cent six months ago). 
Annual inflation 5 per cent (5.2 
per cent previous month) — The 
D-mark was slightly weaker 
within the EMS yesterday but 
maintained its position as the 
strongest currency and was still 
just above its maximum diverg- 
ence limit. The dollar was fixed 
a little lower at DM 2.2765 com- 
pared with DM 2.2782 and there 
was no intervenfton by the 
Bundesbank. Sterling rose to 
DM 4.1960 from DM 4.1800 while 
the Swiss franc slipped to 
DM 1.1921 from DM 1.1963. 
Within the EMS the French franc 
rose to DM 38.35 per FFr 100 
from DM 38.32 and the Belgian 
franc was higher at DM 5.29S per 
BFr 100 from DM 5.293. 

BELGIAN FRANC — EMS 
member (second weakest). Trade 
weighted index 96.1 against 96.0 
on Tuesday and 107.2 six months 
aco. Three-month Treasury hills 
13.75 per cent (15 per cent six 
months ago). Annual inflation 
8.4 per cent (7J. per cent 
previous month) — The Belgian 
National Bank spent the equiva- 
lent of BFr 1.9bn supporting the 
Belgian franc last week accord- 
ing to figures released yesterday. 
This was down from BFr 3.7bn 
which was spent the previous 
week. However this week the 
Belgian unit has shown a weaker 
tendency and was fixed at its 
floor level against the D-mark 
on Tuesday. Yesterday it 
recovered slightly and the 
D-mark sliped to BFr 18.8S85 
from BFr 18.90. The dollar 
slipped to BFr 43.0350 from 
BFr 43.1125 while sterling 
improved to BFr 79.2425 from 
BFr 78.9925. 


May 12 spread 
U.S. 1-8370-1.1 
Canada 2,2670-2- 
Neihlnri. 4.63-4.68 


IV-llaC pm 
atMOcdls 
9V10\ore dla 


Ireland 

W. Gar. 

Portugal 

Spam 

Italy 

Norway 

France 

Sweden 

Japan 

Austria 

Switz. 


sp read Close One month 

1.8370-1 .8460 1. *380-1 .8380 0.27 -0.37c dia 
2.2670-2 2820 2.2780- 2-27S0 0.60-0.70C dte 
4.63-4.68 4.86-4.67 lVItc pm 

Belgium 78.75-79.45 79.20-79.30 X-AOc din 

Denmark 14.15-44.23 14.19-14.20 SVlOVro dls 

1.2055-1.2150 1.2105-1.2115 Q.63-0.73p dis 
4.15'— 4.20 ** 4.19-4.20 IVINpf pm 

1Z7.25-1 28.50 127.75-128.25 110-46SC dls 

186.25-187.25 186.75-186.95 65 -35c dis 

2.318-2^32 2^24V2-326 s j 20-23 lire dls 

10.83-10.88 10.84V10.8Sh 8V9**ore dls 

10.89-10.97 10.93V 10.94h 8V10*»C dis 

-fO.49-10.55 1O.S1V70-52 1 a \ore pm-h df* 

425-431 428-430 2.30-2.1 Qy pm 

28.40-29.66 28.53-29-58 H-10Vgn> pm 

3.50-3.55 3.53-3.54 * 3V3hc pm 


2.316Z332 

10.83-10.88 

10.89-10.97 

10.49-10.55 

425-431 

29.40-29.66 

3.50-3.55 


% Three % 

P-a. months p.a. 

-2.09 0.70-0.60dis -1.63 
-3.42 1.50-1 .60dlfl -2.72 
3.86 5-4>,pm 4.07 

-5-30 7D-8D dis -3.7B 
-8.45 21*1-23 dls -6.Z7 
-6.74 1.89-2-06dis -6.52 
4.65 4 , «-4 5 » pm 4.29 
-26.95 325-1065dls -21.72 
-4.82 216-250 dis -4.98 
-11.09 63V 66'. -dls -11.16 
-9.61 15'.-16*«d» -5.90 
-10.15 25V27’.dts -9 78 


— i pm-pjr 0.14 
6.15 6.40-6.20 pm 5.87 
6.02 33V26* pm 4 06 
11.46 8V8>« pm 8.62 


Belgian rale la for convertible Irenes. Financial franc 88.35-86.45. 
Six-month forward dollar 1-25- 1.35c dis, 12-month 2-05-2. 25c dis. 


THE DOLLAR SPOT AND FORWARD 


May 12 spread Close One month 

UKf 1.8370-1.8460 1.8380-1.8390 0.27-0.37C dis 

Irelandt 1.5170-1.5270 1.6170-1.5190 0.63-0 .55c pm 
Canada 1.2305-1.2400 1.2390-1.2395 0.15-0. 18e dls 

Nethlnd. 2.5190-2.5390 2.5380-2.6390 1.30-1. 20c pm 
Belgium 42.85-43.13 «3.11-43.13 13-1Sc dis 


% Three % 

Ps, months p.a. 

—2.09 D.70-0_80dl3 —1.63 
4.66 1 JO-1.75 pm 4.80 
-1 60 0.34-0 J8dis -1.16 
6-82 3.62-3.52 pm 5.64 
-4.32 27-33 dls -2.79 


Belgium 42.85-43.13 43,11-43.13 13- 18c dis -4.32 27-33 dls -2.79 

Denmark 7.6876-7.7400 7.7290-7.7320 3.8S-4.10ore dis -6.18 8.75-9.25dis -4.66 

W. Gcr. 2.2630-22850 2.2800-2.2810 1.Z4-1.19pf pm 6.39 3.40-3.35 pm 5.92 

Portugal 69.25-69.85 69.50-69.75 50-Z00c dls -21.57 150-52Sdis -19.42 

Spain 101.10-101.60 101.50-101.60 20-28c dls -2454 80-95 dig -3.45 

Italy 1.260-1.267’* 1.266' *-1.2871* 9V10 5 . lire dis -9.72 29*1-31 dis -9.56 


Spain 

Italy 

Norway 

France 

Sweden 

Japan 

Austria 

Switz. 


5.8800-5.9040 5.9000-5 .9030 3.50-3.90ore dls -7.52 5.60-6.00d|s -3.93 


:b" 5.9050-5.9600 5.9500-5.9550 3V4*»c dis -8 08 11V12 ‘j dis -8.06 

Jen 5 7080-5.7270 S 7196-5.7215 1.10-0.95ore pm 2.15 2.50-2.3S pm 1.69 

n 231 .25-233.® 233.45-233 55 1.63-1.55ypm 8.17 4.45-4 J5 pm 7.54 

ria 75.99-16,08*/ 16.03V16-04** 10-8 Vg ro pm 7.01 2A\-2V, pm 5.79 

c. '1.9010-1 .9240 1.9220-1.9230 2.00-1 .92c pm 12.23 5.20-5.12 pm 10.74 
t UK and Ireland are auotad in U.S. currency. Forward premiums and 
discounts apply to the U.S. dollar end not to the Individual currency. 


CURRENCY MOVEMENTS CURRENCY RATES 


j Bank ef Morgan 
; England Guaranty 
Index Changes?, 


Bank] Special 
rate i Drawing 
S Rights 


Sterling 

U.8. dollar. - 

Canadian dollar.— 
Austrian schilling. 

Belgian frana 

Danish kroner 

Deutsche mark..... 

Swiss franc 

Guilder ..... 

French franc 

Ura 

Yen „ 


Based on trade weighted changes from 
Washington agreement December, 1971. 
Bank of England index (base average 
1375 =■100). 


Sterling - 10.620646, 

UAS.r. 18 (1.14416 

Canadian S„ 15.16. — * i 

Austria Sch. 6V 18,3420 

Belgian F 14 1 49.23B8 | 

Danish Kr_ U 18.80546 

D mark. 7V 1 2.6D46S 

Guilder. 8 2430159 

French Fr.„. Bi> 6,00890 

Lira » ! 1447.65 

Yen .. . 51- 265.445 

Norwgn. Kr. 9 i 6.74025 ! 
Spanish Pts. 8 .'116.073 l 
Swedish Kr. 10 I 6.52514 I 

Swiss Fr 5i t 2 18420 | 

Greek Drich. 80i| 70.5947 , 


* CS/SDB rata lor May 11: 


OTHER CURRENCIES 


EMS EUROPEAN CURRENCY UNIT RATES 



ECU 

central 

Currency 
amounts 
against ECU 

•i change 
from 
central 

change 
adjusted for 

Divergence 
limit *4 


rams 

May 12 

rats 

divergence 

Belqian Franc ... 

44.6963 

45.0427 

+0.7B 

+0.99 

-*-1-5440 

Danish Krone ... 

8.1&332 

8.07969 

-1.27 

-1.06 

-1.6428 

Gorman D-Mark 

2.41815 

2.38539 

-1.35 

-1.14 

-1.1097 

French Franc ... 

6.19564 

6.23513 

+ 0.48 

+0.69 

-14)783 

Dutch Guilder ... 

2.67296 

2.65206 

-0.78 

-0.57 

-1.5069 

Irish Punt 

0.686799 

0.689001 

+0.32 

+0.53 

—1.6689 

Italian Lira 

1305.13 

1324.20 

+1.46 

+1.48 

±4-1242 


Changes are for ECU. therefore positive change denotes a 
weak currency. Adjustment calculated by Financial Times* 

Fur Sterling/ECU rate see CURRENCY RATES table. 


Argentina Peso .J25.8a0-23.840tl 
Australia Dollar...! 1.7255 1.7275 
Brazil Cruzeiro._.,280.3 1 291.31 
Finland Markka..! 8.17049.229 
Greek Drachma.^ 1I0.96S-114.560 
Hong Kong Dollar 10.584-10.599 

Iran Rial." .! 147.56* 

Kuwait DlnarfKD),0JI555G.52435 
Luxembourg Fr— I 79.20-79.50 
Malaysia Dollar... 4.1930-4.1980, 
New Zealand Dir. 2.3675-2.5715 
Saudi Arab. Rlyal 6.3015^.3118 
Singapore Dollar. 8.B240 5.8290 
Sth. African Rand 1.9360-1.9370 
UJLE. Dirham .... 6.7445-6.7555 


t Now one rate. • Setting rate. 


EXCHANGE CROSS RATES 


Pound St’rllng; U.S. Dollar ; Deutechern'kiJapan’se Yen' French Fran^ Swiss Franc Dutah GulW| Italian Lira Canadle Dollar Belgian Franc 



Dutch Guilder 
Italian Ura 1.000 


Canadian Dollar 
Belgian Franc 100 


FT LONDON INTERBANK FIXING (11.00 a.m. MAY 12) 


3 months U.S. dollars 


6 months U.S. dollars 


bid 14SH6 | offer 147/18 I bid 14 1/4 | offer 14 S/8 


EURO-CURRENCY INTEREST RATES (Market closing Rates) 



SDR linked deposits: one month 13*w-13 T i4 per cent: three months 12V13 5 * per cent: six months ir u »-13*» par cent; one year 12V12 3 * per cent. 

ECU linked deposits, one month 13 r i-1 dl i per cent: three months 13 l *j»-14S, k per cent; six months 13V14 per cent: one year 13-1 3*« per cent. 

Asian S (closing rates m Singaoora): one month 14V14*« per cent; three months 14V14^ per cent: six months I4i«-14>* per cent: one year U-ldi, per cent. 
Long-term Eurodollar two years 14VT4 J « pet cent: three years 14V 15 per cant; four years 14V 15** per cent; five years 15-15*. per cent: nominal closing rates. 
Short-term rates arc call lor U S. dollars, Canadian dollars and Jaoanese yen; others two day3' nonce. 

The following rates were quoted for London dollar certificates of deposit: one month 14.30-14.40 par cent: three months 14.10-14.20 per cent: six months 13.95- 
14.03 per cent; one year 15. 70-13.90 per cent. 



14.000- 14.050 1' / 
0.9565 0.9390; I 
1S7.57 168.36I 
4.4495-4.4515 I 
81.40-61.60 < 
5.7600 6.7650 I 
80.60* . 
0.2849 0.2831 I 
43.11-43.13 I 
3.2820-3.2850 I 
1 .2880-1.2890 i 
3.4305-3.4325 i 
2.0810 2.0840 I 
1X1525.1.0535 I 
3.6716-3,6735 * 


The fixing rates era the arithmetical means, rounded to the nearest one-sixteenth, 
of the bid and offered rates for SlOm quoted by the market to five reference banks 
at 11 am each working day. The banks are National Westminster Bonk. Bank of 
Tokyo. Deutsche Bank, Banque Nationals da Peris and Morgan Guaranty Trust. 


MONEY MARKETS 


EUROCURRENCIES 


Grand fto* 
Capilaiacc — 
C0M«.&ind_ 

DfflrrsUc 

Growth . 


851 4.13 

„W.l +0.1 
54to +02 457 
10*1 3.41 

8&A +3T 532 

62.7 -MU 4.09 


London rates easier 


Firm tone 


UK clearing; hank base lending 
rate 13 per cent (since 
March 13) 

Interest rates maintained a 
generally easier trend in the 
London money market yesterday, 
helped by guarded optimism 
about the Falklands dispute and 
further encouraging economic 
news. 

In the interbank market three- 
month funds fell to 13 per cent 
from 13* per cent, and other 
fixed periods also eased by 
about -h per cent. 

Day-to-day credit was in short 
supply, but the authorities had 
difficulty estimating the exact 
amount of the shortage, revising 
the figure three times. The early 
morning forecast was for a 
shortage of £50m. but this was 
increased to IlOOm at noon, and 
to £200m and finally £150m 
during the afternoon. 

The major faeLnrs were: bills 
maturing in official hand? and a 
net market take-up of Treasury 
bills -£90m. coupled with a rise 
in the note circulation -£30m. 
.These were partly offset by 


Exchequer transactions +£60m. 
■ In the morning the Bank of 
England gave £105m of assistance 
by buying £27m bank bills in 
band 1 (up to 14 days maturity) 
at 134 per cent, and £7Sm bank 
bills in band 2 (15-33 days) at 
13 per cent. Further help of 
£19m was provided in the after 
neon, making a total of £l24m. 
This was through purchases of 
£5m bank bills in band 2 at 13 
per cent, and £14m bank bills 
in baid 3 (34-63 days) at 12} 
per cent. 

In New York the upward 
pressure on interest rates con- 
tinued, influenced by the end of 
the statement week (make-up 
day) for the banks. Overnight 
Federal funds traded around 15- 
16 per cent despite the injection 
of Slbn in reserves by the 
Federal Keserve Bank through 
a customer repurchase agree- 
ment. At the time funds were 
trading at 152 per cenL 

In Amsterdam interest rates 
were slightly firmer, in nervous 
trading reflecting uncertainty’ 
about the Dutch guilder and its 


value against the D-mark. The 
Dutch central bank has probably 
intervened to support the 
guilder recently against the Ger- 
man currency. Call money 
rose to 84S per cent from 8ti 
per cent; three-month to 8t$ per 
cent from SH per cent; and 12- 
month to 8fS per cent from 8ji 
per cent. 


Belgian Franc 


TRADE-WEIGHTED 
INDEX 
W5 avenge* 

— iso 




Eurocurrency interest rates 
had a nervous underlying tone 
yesterday, reflecting fears about 
devaluations of tbe weaker mem- 
bers of the European Monetary 
System, and signs of political 
instability’ in the Netherlands. 
Euro guilder rates rose on news 
that Labour Parly ministers in 
tbe ruling Dutch coalition had 
offered to resign, while short- 
term Euro Belgian franc rates 
also firmed as doubts grew about 
the franc’s ability to maintain its 
present value against the very 
strong D-mark. This led to a 
sharp -widening of the Belgian 
currency’s forward discount 
against the dollar. On the other 
hand the Freoch franc and 
Italian lira, both supported by 
very high interest rates, did not 
appear to be under any pres- 
sure. wtth Euro French franc 
and Eurolira rates little changed. 

Eurodollar and sterling rates 
were also fairly steady, but 
Euro Swiss franc rates main- 
tained ihe recent downward 
trend, increasing the franc’s 
forward premium against the 
U.S. currency. 


"iaa f:«e 

F» BUM Ute Offlc* m Max* (Wt Mn. 
Brawn SMptar & Co. Ltd. (aXg) 

Ka4wds Hce, Haywanh Hth, Ss. 0444-458144. 


loc.&&w« gL5 

Erta tac. 60.4 

SrraterCos.nh’. — Ml? 

PreL&Wt 4L2 

CMTrist CL8 

Fixed kjteiBt 


MotaN IMt Dost Ma n a gwt (aX9) For Tower Unit ibsl pane m 

Bread SLAne.BtonffcMSL. EC2. 01-638 3911-2 Cuter Unit Trua 

ffltSincTjt" — B &3 iSjj IIS Union Unft Trust Ml i n B UT 

7J3 100. Wood SlreeLEXA 01-83 


ju arums unon um ir 

7J5 100. Wood SlrecLCXA. 
9X ' TUUT UayA -I6SJ 


S&W.RB. IwJ 


5UM-03| 162 W O^easTnra — _ 
teJl+aq 2J3 (Acorn (Mb). 


Mooted P rcvMmrf In*. Mnpv. Ltd. 

48, GHKcdaattiSL, EC3P3HH. 01-6234200 

IS 


8-S. Units May LI 

Bi. 11_ 4Z7 0 

Fmaica 52.9 

GnwrtfiAccutn. 365 

Gawuii lnmna_ — W6 

HI Income 25.1 

Income 29.fi 


«& 3 vBS«ERBd 


-oa ub 

a » 


Fteanrry 

ESS£S= 


Pacific Sre. Dm.— —B 
North Amw. fl 


Bactormtor Management Co. Ltd. 

Tlw Stock Eja*aw.ec2P2JT. 01-5882968 
Buck lorn Fd. Mav 8.IW.0 92fl 3.62 

fflWS5S±:S m~: ^ 

Aujc. Uni te) May 12. 721 f.M 

Canada Life IMt Trust Utegn. Ltd. 

a^»W9HSt, Pcoen Bar. Hera. P. Bar 51122 

Cwi-GnOtsL 1523 55.0! +0^ 4.47 

DaGen-Accum [73.4 773+53 4 47 

Do. bws™ DM |57i 39^3 , &«9 



1 as vt 



w. W(9) 

0306887766 


4aKbXc) , 


4GLSLIWH^lteitMEC3F3EP 01-551000* 
Brewtn IWLCr. I*b._BL0 54JB +10) 4J9 


Cape) (Janes) MngL Ltd. 

100. OM Broad SB, EC2N IBS. 01-5086010 

Phc« on Mar i Next deaEngMsj 19. 

Cwt, Setoag IMt Trust Managmfa) 
57163, PriocFuSL. Maodnter 061-236S6C5 

Can, Setaa Cap. Fa .145.4 484/ 40.41 242 


MONEY RATES 


LONDON MONEY RATES 


NEW YORK 


Prims rare 

Fed. funds (lunch-time) 
Treasury 6i(f3 (IS-wnefc) 
Treasury bills (26-week) 


I Sterling Local Local Auth. 

Certificate Interbank i Authority nagotiabla 
I of deposit deposits bonds 


Finance [Discount 1 Eligible Flno 

House Company Market ITraasury Bank Trade 

Deposits Deposits | DeposiUj Sills* Bills* Bills* 


G St MANY 

Lombard 

Overnight rate 


Overnight.. ' — 

2 days notice., — 

7 days or — 

7 days nonco„. — 

One month..... lBrL-13 

Turn mnntha. I IX. . T X 


i27 B .i34e 

12 i* 


13.15m2Vs.I3 — 


CwrSdiSFa-eaa'a'PAS SS +0-3 1.78 
Chartace Charities H/R Fund±t 
1A Monedr. Loads*!. EC2. Ol 438*121 

SSS^- 3 orl 3335 

Charities OfHctal Invest. Fundtt 
77 London Waa,S2NUB. &5B81815 

ss^ssss— 1 m ltd 

Chieftain Trust Rteragcr 
U. New St, EC2M4TP. 

tesloKi) BJS 

Austra rtastz) — — ffij. 

Far E*2J*nTa.lz)_tj7j 



t(a> 
m^2Beau 
Lg+U» 4J4 
Lfi +03 425 
fllZ) 237 
254 


Nathgate IMt Trust 

20. Moored* EC2R6MI 


naomULfEXy) 

91-6064477 


NonrWi Union Ins u ran ce Groop (b) 

P.O. B0« 4, Hondch, NR13N&. 060322200 

BwpTsLFM 15337 56U}+LS 537 


ftoarl That B ffawa ge r i Ltd. (aXaXz) 

25% HkAHofconv WC1V7EB. S3»8441 , 

S sapffizdw 

ucasa. Units) (743 7M| J 5A 9 


d m 


Pefican Units Admin. Ltd. (gKx) 

57-63, Mrrasi St. Mradesnr. 061-236 5605 
PHfcmUste-. P37.4 147A4 +0£| 4 M 


ere Ud (a) 

ECZ 01-5884111 



01-628 B011 

69.7W .....4 SJ7 

W fr) _ 

0245-51651 


v.r 

i "~- 

t-< : 


^^403 


v'i : - n- ! : 


: s: 


Pw pa ta d IMt Trust MngtnL (a) (z) 
^HutSMtadwonTlamH 047126868 

Growth -KL8 _8&Zj ....J 362 

iSSSSisRoSSf;^^ 3 JO 


Ml A Co. 

GfenaiidFWd 
Money Fistiv 


h wutraan t Bank of Inland (a) 


Frau Hu# VnresL Co. Ltd (jXO 

44, BtaODStray Sq, WC1A2RA 038238879 

SSS?uS?*zzm MSA Mi 

Cd Ltd 


One month 

Three months — 
Six months ..... 


FRANCE 


Two months.,., | 13 TS 15 

Three months. 1 12|| 12ft 

Six months I 12ft-12ft 

Nine month 123 12ft 

One year J 12ff-13ft 

TVrQ years.... — 


123 4 13 i b 
13-13 >s 
«ft-l*rii 
12-ft-12rir 
12^131^ 
12 V 13 la 
13-13 ia 


13Ss-13U 

13JS-13 

133B-13 

12tS-124e 

133e-13 

13Je-13 


13-13 12J4 
133s | 123. 

13 Be ■ 1214 


I12Q-124-J 

12&-12H; 


1219 I 12* ,12^-12*. 


- 112,4.121b. 


Intervention rats 

Overnight rats 

One month 

Three months 

Six months — 


JAPAN 

Discount rats . n >,n, mi 

Call (unconditional) 

Bill discount (tii res- month},, 


Local authorities and finance houses seven days' nonce, others seven days fined. Long-term local authority mo linage 
rates, nominally three days 13 J * oar cant: four years 13'a per cenu live years 1d u u per cent. 43a nk bill raids n toblg ere 
buying rates tor prime paper. Buying rates far four-month bank bills 1 Z*Hj per cem: four months itodn bills 13S per cant. 

Approximate selling rales for one month Treasury bills 12“u ner cent: two months I2*u-12^ per cent; three month? 
12*i, per cent. Approximate selling rate lor one month bank bills IZOii'IZ^u per cent: two months 12*j* per cent and 
three months 12Vl2Un per cent: one month trade bills 13 par cent; two months 12 7 . per cent; throe months TZ*i per 
coni. 

Finance Houses Base Rates (published by the Finance Houses Association) 14 par rent from May 1 1982. London 
and Scottish Clearing Bank Rates for lending 13 par cent. London Clearing Bank Deposit Rates for sums at seven days' 
notice 10-10*4 per cent. Treasury Bills: Average tender rales of discount 12.6180 per cent. 

Certificates of Tex Deposit .(Sorics 5). 1J*i per cent (ram March 3, Deposits withdrawn for each 11 per cent. 


UL Treat <2) tel 

Baste W&auregTg. 

hOT l SrewthTg- pis 

StsfflerCo-sf^aZWi SlShIjJ 335 
Chtuiarion Fund Wangwifa ) 
57^6%PHnoessSt,ltandmB'. 061-2365685 

fisfac=Hj « 

Wgh Income [29.7 g1g« *nm WJ4 

Contoder&ttea Funds Mgt. lid U> 

5ft Chancery Lane, WC2A1HE. 01-2C032 

Growth Ftoal (82.4 86 7f J 4.44 

CnfemtoHit IMt TsL Mgn. Ud 

Budderiray, London EC4N 8BD. 01-2484984 


M 

01-62B6626 




SP10 IPS. 





Key M Mi item Lb 

VX MvdSpSL, K2A248.I 

fjrttnpt Fdl 


W(9) , 

03-6286626 


ML Ptot fa B u Ntos 

HoBvx Bn. EdN 2NH. 


Lid (a) <b) (c) 

OM05SZ2Z 




Do.Ac a s B .,. 

tffster Bank (a) . , ..." 

Wring Sired BtHed 1 M V . WW . 

OP UMer Growth {462 4M| 5JB 

IMt Tnat Prrrmrt A Mgn*- Ud _ 

BreBHse,K«WB5omSl,BC4H«.0W2M9n 

Frizes ite. Hod JS6 3 t02i ..-J * J* 




XnFhcdhL 

RSsnracrt 


3M5 Grcshapi Sbnt EC2 
“ Fd. 


c®. Ltd. 


«aa.i4 

GfltTriSt PftO 4ft 

•Wetidy dedng 8b/ WfrirSfer. 


lUdiwort Benson Unft HOngw 

20,Fe9CtMtiiSL.EC3 01-6238000 

Sisms=m M :rj & 


MOTES - V., 

Prices ere to pence Mtet Wwrwfaa bxSotttf .Ml 
. these ontoMcd 5 wHh no prefix rete tojfft 
dotm Ylefeb * (shown tain ccfexm) tihw 
laghq npoKS ■ Offered 




ReSanee IMt Mgn. Ud 
ReffacccHKrTiteridgeWeft^ra. .,009222271 

Isn&lr fc J 





2U> 


4 VMd before Jentt to. t 
# Op(y MMte te ctoriWUt Met. 


II I 

ij'v? .'i 

m % 

»r 


lil 

























































































































LOANS — Continued 


1+ r| YJtM ' 
- bt M. 


Rnanciai 


BRITISH FUNDS 

32 1 I Ms |t«| M 

l»{ Stack i £ I - I M-I M. 

Shorts” (Lives up to Five Years) 

OJl [ 13 JS 


i 


txt- 



R 


% 

i 

a 
a 

3 
3 
3 


£ 


5? 


ttt 


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t-w— 


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1 £ If 


FTT 


ET 




ttv 






rr» 




I 

i 





HP, 99% 
94% 78% 
79 66 

92% 81% 
85% 71% 
100% 82% 
107 89 


... 7B% 
38 33% 

99% 81% 
67% 59% 

102% 90 
<9% 44% 
66 55% 

98 81% 


3? 


Tltl 


m 


1 


r? 


k 




ST? 




tr. 


HoneyweB $L50. 
Hutton (E.FJSL 




',H?7 


m 


7T 


E £ 




E 


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Li 


s* 


fa 


RPI 


Hmfcer SHCanJ 

HcdnngerS5 

Hudson’s Bay 0„ 
Imperial GW — 


9.2 

I 55 228 
6-0 375 

IL6 U 

I 4.7 23 

1 2.7 43 

5.4 442 

u % 

106 294 . 

U 22 a 

93 105 73 

a s a 

B S 

4- 5 172 

63 33 

5- 6) 29 117 

43 66 59 

4.9 110 73 

9.5 980 

8 V 

S a 

72 72 59 

6.4 55 35 

52 H 62 

93 280 

AM 266 
L9 131 

9.8 150 

2.9 120 

6.9 87 

» 

166 
107 
94 
158 

22 20 
119% 92 
66 S3 

112 92 

82 68 
92% 71 
20 15 

184 , 

38 I 
,, 37 

« 175 i 
^ 33 
St 104 

53 76 

H * 

H 343 
72 1 5% 





LOANS 

Public Board and Ind. 

tt 57% lAoric. ML 5pc 1 59"89 1 61% 1 837 1433 

29% 24% Sfct. Wlr. 3pc ‘B’ 29% 1 10.46 12.97 

114 103 UJ.S.M.C. 9pcl9S2...l 133 739 — . 

100% M I Da without Vfant&J Z8P, 938 — J 335 



3 


<£- 











CANNING 
CAN DO: 
ENGINEERING 


Canning Group Companies supply plant, equipment 
and accessories for all electroplating pro cess es 
Including preparation and post-plating procedures. 
Plant and equipment is also manufactured and supplied 
to suit individual requirements for the treatment of 
industrial effluent, with recovery techniques; also for 
the reclamation of water to potable standard for public 
and industrial purposes. 

The Engineering Group comprises: 

W. Canning Engineering - Complete equipment for 
electroplating, polishing, and deburring. Roller and 
curtain coating and laminating machines. 
Environmental and corrosion test units. 

Electroloid and Osro-Canning - Specialists in plating 
plant for the electronics industry; barrel plating plant; 
DC switchgear; abrasive finishing machines and 
media; plastic and GRP fabrications. • 

Pollution Control and Water Management - Plants 
for potable water supply; trade effluent treatment; and 
water recovery. 

BradorvmieUafraB W. Crating pie, 

133 Graat Hanptn Straat. Krafagban, B18 MS, 

WHAT CAN CANNING 
DO FOR YOU? 


V 

387 
£77% 

129 
195 
44 
154 
97 
197 

44 | 35 

45 30 

63 51 

29 (22 
576 


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His 


V-”‘ ,AP T,IOT iiffi 


Thursday May 13 1982 


Dutch government falls over cuts row! 


BY WALTER ELLIS IN AMSTERDAM 


THE DUTCH coalition govern- 
ment of Premier Andries Van 
Agt collapsed yesterday fol- 
lowing the rejection by the 
Labour Party of large-scale 
spending cuts being sought by 
the dominant Christian Demo- 
crats. 

Mr Van Agt announced he 
■was informing Queen Beatrix of 
the resignation of the JVether- 
lands' 16th post-war govern- 
ment. 

This followed a decision' by 
Labour's six ministers to cease 
serving in the 15-member 
Cabinet because of the spending 
cuts, which Mr Van Agt said, 
were needed this year and next 
to trim the Government's budget 


deficit 

The three-party centre-left 
coalition was formed only last 
autumn after three and a half 
months of negotiations follow- 
ing the spring general election. 
The other partner was the 
Liberal Progressive Democrats 
’66. 

Mr Joop den Uyl, the Lab our 
Party leader, and his party 
colleagues in the cabinet have 
. argued that-the.ChristianJDeino»- 
crats, aided by the centrist 
Democrats *66, had- reneged on 
the Good Friday Accord, a com- 
promise - on economic • policy 
worked out after 'protracted 
coalition talks last Easter. 

They said Mr Van Agt had 


done everything possible to 
increase the volume of cuts and 
to extend them by degrees into 
1983. 

The other two parties sought 
a reduction in government 
spending by an estimated 
FI 2.3bn ( £500m ) for the 

remainder of 1982 and FI 8.5bn 
in 1983 to balance , the loss of 
revenues that would result from 
a planned cut of FI 500m in 1983 
-in-, taxes on Dutch industry,- 
which is suffering, from . the 
effects of the recession. 

At' the heart of the row with 
labour was the question of 
which government programmes 
would suffer most from the cots. 
The Labour decision to bring 


down the government and risk a 
general election came despite 
recent op in on polls showing the 
party trailing well behind its 
main rivals. Labour also did 
poorly in local government elec- 
tions in March. 

Mr van Agt believes firmly 
that the continuing recession 
can be dealt with only by sub- 
stantial cuts is public spending 
and a consequent reduction in 
the - government's - borrowing 
requirement 

Mr den Uyl rejects this. He 
wants to protect the elaborate 
and generous welfare state the 
Labour Party created, and is 
anxious to reduce unemploy- 
ment from its current level of 


The news .of the govern- 
ment’s fail coincided with an 
announcement that Dutch un- 
employment rose in April to a 
post-war record of 504,200, 
from 482,200 in March and 
361,100 last April. 


£3.5m loss 
for Royal 
Insurance 


BY ANDREW TAYLOR 


By Eric Short 


ROYAL INSURANCE, one of 
the largest insurance groups, 
has paid about £22m on house- 
holders* claims since the New 
Year because of the severe win- 
ter. 

The weather is a major factor 
behind the group's under- 
writing loss of £64m, and over- 
all pre-tax loss of £3.5m. in 
the three months to the end of 
March, announced yesterday. 

The first-quarter underwriting 
loss is more than three times 
the £18.3m loss in the same 
period last year, while the pre- 
tax loss, I? aval’s first in recent 
memory, compares with a 
£2fl.7m profit a vear before. 

Some £1.5m of the pay-out to 
householders was on claims 
made in lust two weeks of 
January, when the floods and 

storms reached th°ir heieht. 

With claims for weather 
damage to commercial 
prone rtv taken into account, the 
total paid by Koval since the 
severe winter weather started in 
December was more than ff4nm. 

Royal is the third major 
insurance group to record pre- 
tax losses for the first quarter, 
following Commercial Union 
and General Accident. 

Normally insurance com- 
panies’ investment income 
more than covers underwriting 
losses. The market took a 
sanguine view of the results, 
and the share price finished 3p 
higher at 346p. 

It is apparent from the 
results of the three maior 
insurance groups to have 
reported sn far that the winter 
weather did far more damage 
than ori finally believed. 

In March the British 
Insurance Association estimated 
i-hp total cost to insurers at 
£200m. but forecasts of £300m 
now seem more realistic. 

Details, Page 24 


A SMALL FIRM of architects, 
backed by the consulting 
engineer for the Pompidou arts 
centre in Paris, has won the 
design competition for the con- 
troversial £ 200 m commercial 
property development for the 
southern end of London’s 
Vauxhal! Bridge. • • 

A design competition was pro- 
posed by Mrs Michael Heseltine, 
Environment Secretary, after 
several -schemes for the 32-acre 
Thameside site, including the 
Green Giant tower block, bad 
been rejected at public in- 
quiries. The competition was 
organised by the Royal Institute 
of British Architects. 

The winning design, submit- 
ted by Sebire AIJsop and Mr 
Ted Happold, senior partner of 
Buro Happold, constdting’ en- 
gineers, has been passed to Mr 
Heseltine, who must decide in 
the next few weeks whether to 
place the plans before Parlia- 
ment 

The project involves more 
than lm sq ft gross of offices 
in six separate zigzag blocks 
ranging in size from 71.000 sq ft 
to 320,000 sq ft The office blocks 
will be buttressed by terraced 
blocks of fiats comprising 211 
one- to four-bedroomed dwel- 
lings. 

Public facilities are to be 
situated in a glazed mall run- 
ning the length of the site. 
Plans include around 50.000 
sq ft of shopping, two public 


Houses ofW-.ij 
-Parliament 


hD Cross I 
Site I 



houses, a leisure centre and 
riverside walk. 


Mr Heseltine has said that if 
he approves the winning scheme 
he will seek pari iamen tary 
approval for a special develop- 
ment order which would permit 
the project managers, Arun- 
bridge, to short circuit normal 
planning procedures. 

The winnig design was among 
128 entries from a cross section 
of the architectural profession. 
The choice of Sebire, which was 
founded in 1970 by Mr Andrew 
Sebire and Mr Kit AIIsop. is 
something of a surprise given 
the firm’s relative inexperience 
of commercial projects of this 
scale. 

The firm’s reputation has 


been based in low cost housing. 

An important factor behind 
the choice of the winning 
scheme is thought to have been 
the collaboration between 
Sebire and Mr Ted Happold, an 
internationally recognised con- 
sulting engineer and professor 
of bunding science at Bath 
University. As a consulting 
engineer with Ove Arup, Mr 
Happold was involved in the 
construction of the Pompidou 
Centre In the mid-1970s. 


The scheme is being backed 
by a Middle East consortium, 
led by Kuwaitis, which has 
assembled three separate but 
adjoining development sites at 
the foot of Vauxhal! Bridge. 


The site is to be developed 
in phases, and the whole pro- 
ject could take between four 
and six years to complete, and 
cost up to £2 OOm including 
service roads, public walkways 
and other infrastructure. 


Continued from Page 1 Continued from Page 1 


EEC ready Optimism of settlement grows 

lee i-vF life in t'he Smith Ailantii* 


Continued from Page 1 


military action to be re- 
ported since Monday night, 
when British ships bom- 
barded the coast near Port 
Stanley.' and also struck a 
tanker in the Sonnd between 
East and West Falkland. That 
Incident has still not been 
confirmed in Buenos Aires. 
Argentina was also silent last 
night on the Skyhawks. 

There were no authorita- 
tive reports of other fleet 
movements yesterday, al- 
though the Ministry of De- 
fence announced that patrols 
were continuing as part of 
the effort to enforce the total 
air and sea blockade of the 
islands, and to keep up pres- 
sure on the estimated 7,000 
to 9,000-strong Argentine 
garrison there. 

The Ministry said Nimrod 
maritime reconnaissance air- 
craft now based in Ascension 
and adapted to be refuelled 
in flight, yesterday joined the 
patrols, despite bad weather 
and poor visibility. 


loss of life in the South Atlantic 
on Argentina’s failure to comply 
with UN resolution 502. The 
motion also urged EEC min- 
isters to remember that the 
rule of international law was 
at stake in the Falklands con- 
flict, as well as the authority 
of the UN and the solidarity 
of the Community. 

In a rather lifeless debate, 
several speakers regretted that 
Britain was showing such an 
absence of solidarity by block- 
ing the agreement to raise Com- 
munity farm prices by 10.7 per 
cent 

Sir Henry Plumb, leader of 
the 61-strpng British Conserva- 
tives, was clearly in some, diffi- 
culty on this issue. He did 
everything but beg forgiveness. 
He promised to tell the British 
Government about the concerns 
which had been engendered “in 
the minds of our fellow Euro- 
peans.” 

However, said Sir Henry, 
failure to renew the Com- 
munity’s sanctions “would be 
signing a blank cheque — not for 
Britain but for Argentina.” 

Mrs Barbara Castle remanded 
the assembly of how events 
were bagiiuung to justify the 
Socialist group's call last month 
for simultaneous withdrawal of 
British and Argentine forces 
and for UN involvement in the 
peace process. 

The resolution finally en- 
dorsed represented defeat for a 
Socialist motion with a much 
weaker formula calling on the 
ministers only “to review” the 
continuing sanctions. 


Argentine sovereignty over the 
Falklands." 

Sr Enrique Ros, Argentina’s 
negotiator, said of Britain's 
expression of hope: “ it is noth- 
ing more than a sign that they 
are interested in these ideas." 


The Argentiues were speaking 
before news of the shooting 
down of two of their aircraft 
Both countries are now not only 
engaged in fighting in the South 
Atlantic, but also in a struggle 
to get the backing of world 
opinion. Britain is keen, to keep 
the support of its EEC partners 
who- now seem likely to renew 
sanctions against Argentina 
when they expire on May 17. 

In Britain’s case, the Govern- 
ment’s need to show flexibility 
abroad has to be balanced 
against the growing unease and 
potential for revolt at West- 
minster where some Tory back 
benchers fear too many conces- 
sions will be made to Argentina. 

Their concern is likely to 
surface during today’s emer- 
gency Commons debate on the 
crisis, which will be opened by 
Mr Pym and closed by Mr John 
Noth the Defence Secretary. 

Officials in London are still 
cautious, and while there bas 
been some agreement on mat- ' 
ters of derail, they do not yet 
see signs of any breakthrough 
on the key issue of the future 
sovereignty of the islands. Mrs 
Thatcher has said this cannot 
be pre-judged in any interim 
settlement. 

The Labour Party is likely to 
continue its conditional support 


for the Government in today’s 
debate. Both Mr Michael Foot, 
the leader and Mr Denis Healey, 
the deputy leader, told a 
meeting of the Parliamentary 
Labour Party that Labour 
should act as a moderating 
influence to reinforce the group 
in the Cabinet favouring a 
peaceful settlement. If Labour 
withdrew its support now, they 
warned, the party would lose 
credibility and the Tory right 
would be strengthened. 

A sizeable group of Tory MPs 
is worried that the Foreign 
Office may be willing to make 
concessions to obtain a deal. 
Many of these MPs believe key 
principles of the restoration of 
British administration and the 
neeid to keep is islanders wishes 
paramount have already been 
compromised in the U.S./ 
Peruvian proposals, rejected by 
Argentina last week though ac- 
ceptable to Britain. 

Mr John Stokes, the right 
wing MP for Halesowen and 
Stourbridge, who has criticised 
the holding of Commons debates 
on the Falklands, said yester- 
day that “if there is a sell out, ' 
no debate will be necessary and 1 
something much more grave will i 
be required.” 

Leading right wing MPs were 
last night claiming that up to 60 
back benchers had written to 
Downing Street and spoken to 
their whips saying they will 
oppose any “sell out" and many 
might resign the party whip. 

There is a large element of 
bluff and counter bluff in such 


assertions. It is, for example, 
not clear what would constitute 
a “ sell out ”. One senior back 
bencher said any deal backed by 
Mrs Thatcher would be regarded 
as acceptable by all but a hard 
core of 20 to 30 MPs though 
some skilful party management : 
would probably be required. . 


Weather 


UK TODAY 


MOSTLY dry with sunny 
periods. Cloud in E Scotland 
and N England and some rain 
in W and SW England. 
London, S. SE, N> NW- England, 
Midlands; East Anglia, Lake 
District 

Mostly dry, sunny- periods. 
Max, 22C (72F). 

E,.NE England,. E Scotland 
Mostly dry and bright but 
coastal mist nod low cloud 
patches. Max. 20C (68F). 
Channel Islands, SW England, 
S Wales 

Cloudy with outbreaks of 
thundery rain. Max. 19C 
(66F). 

N Wales, Isle of Man. N Ireland 
Variable cloud, bright inter- 
vals, possibly showers. Max. 
18C (64F). 

W, SW Scotland 
Cloudy, a little rain at first 
but becoming brighter. Max. 
17C (63F).. 

N Scotland, Orkney, Shetland 
Dry with sunny periods. Max. 
16C (61F). 

Outlook: Little change. 


Haggas family buys back textile business 


WORLDWIDE 


BY ANTHONY MORETON, TEXTILE CORRESPONDENT 


MR BRIAN HAGGAS, 50, has 
agreed to pay £9.2 ra in cash to 
buy back from Dawson Inter- 
national the Keigliley spinning 
and kitting businesses carried 
oo under his family name. 

Dawson bought John Haggas 
late in 197S for £24.9m. At that 
time the Haggas family inter- 
ests received some £ 12.5m as 
their share of the sale. 

The takeover raised some eye- 
brows in the textile world be- 
cause it took Dawson — a high- 
quality Scottish knitwear manu- 
facturer based in Kinross — 
down market into the York- 
shire middle-range spinning 
business. 

The move was justified by the 
desire of Mr Alan Smith — now 
65, and a one-time fighter pilot 
ace alongside Douglas Badtf 
and holder of the DFC — to find 
someone to succeed him as 
Dawson chairman. Mr Haggas, 
who had made a name for. hint' 


self as the first to rationalise 
the Yorkshire yarn business 
through the mass production of 
standard worsted yams,’ was set' 
to be that successor. 


Early last month, however, 
Mr Haggas announced he was 
leaving the board and deputy 
chairmanship of Dawson, which 
sells under such names as 
Pringle, . Brae mar, . Barrie, 
Me George, Ballantyne and Glen- 
mac. He has now bought two 
parts of his former business, 

which was founded in 1715; 
though Dawson keeps the 
Haggas fur interests. 


Haggas has never performed 
particularly well under the 
Dawson banner. When it was 
taken over it was contributing 
£2.5m a year to Dawson, whose 
pre-tax pu&fits have jumped 
from £15.53m in 1978 to £2Q.67m 
last year. But this contribution 
is now down to £l^zm 


Mr Smith said last night: 
“ Brian is a great entrepreneur 
with a two-product company, 
but. is .perhaps not an inter- 
national group man. He is a 
paternalist at heart and happiest 
within his own company." 

Mr Haggas said that a 
Scottish company could not be 
run from Yorkshire, and he had 
. no wish to tear up his family 
foots. “Dawson is a producer 
of high-quality Scottish knit- 
wear and that is Where its 
- future profits and growth will 
come from.” 

His reasons for buying back 
the business were partly senti- 
mental. partly to do with taxa- 
tion and partly because he 
detected “ an outside chance 
that we might set a bit of decent 
trading in the next two or three 
years." 

Getting Haggas back on the 
right road will depend to a con- 


siderable extent on the way In 
which he is able to beat off West 
German competition in yarns. 
There is a feeling in Yorkshire 
that the Germans have been 
able to undercut the business 
because iff a lack of new invest- 
ment. 

Another reason for the buy- 
back was “the sheer fun of 
running your own business in 
your own way.” Mr Haggas 
admitted that the fun was 
greatly enhanced when you 
could count your own bank 
balance in millions rather than 
hundreds. 

Mr Haggas and his mother. 
Muriel, will continue to hold 
3.9m Dawson shares, worth 
approximately £52m, as an in- 
vestment. Mrs Haggas will have 
55 per cent of the new company 
being sef up to run the acquired 
interests and Mr Haggas 45 per 
cent. 

Background, Page 8 


V'day 
midday 
"C *F 

Ajaccio F 19 66 
Algiers C 17 63 
Amsdm. S 17 63 
Athens S 28 82 
Borclne. S IB 64 
Beirut F 26 79 
Belfast F M 57 
Beltjrd. F 19 66 
Berlin S 15 59 
B.arntz F 27 81 
Bmghrn, F 18 64 
Bleckp'l F 18 M 
Bordn. S 26 79 
Boulgn. F 19 66 
Bristol C 21 70 
Bmesels S 19 68 
Budpst. F 17 63 
Cardiff C 19 66 
Caabce. S 23 73 
Coloqne S 19 66: 
Cpnhgn. C 10 50, 
Corfu F 24 75 
Dublin C IT 62, 
Dbrvnk. S 22 72 
Ednbgh. C 10 50 
Faro S 19 66' 
Frankf't S 17 63 1 
Funchal S IS 56 
Geneva S 20 68 
GibrJtr, F 2D 69 
Glnsg’w S IS 59 
G’rneey F 17 63 
Helsinki F 13 55 
Innabr'lt S 20 68 
Invmss. F 17 63 
l.o.Man F 14 57 
Jersey F 19 66 
L. Pirns. S 21 70 
C— Cloudy. F— Fair, 
t Noon GMT 


I Lisbon R 
Locarno S 
London S 
Luambg. S 
Luxor S 
Madrid S 
Maiorca S 
Malaga F. 
Malta P 
Mchetr. F 
Miami! S 
Milan S 
Moscow F 
Munich S 
Naples F 
N west I. S 
N Yor*t F 
Nice S 
Oporto C 
Oslo F 
Paris S 
Prague F 
Rrkjvk. R 
Rhodes S 
Rome F 
Saitb'rg S 
Stckhm. F 
StrasVg S 
Tangier S 
Tel Arhr F 
Tenerife S 
Tor' n rot S 
Tunis " S 
Valencia F 
Venice S 
Vienna; S 
Zurich ‘ S 


R—Rainj S— Sunny 
temperatures. 


CSwerfon 

ft^orkboafc 

m • 



-Wf»Bsii*'6m-23Bi --r t 

Cones, bk rft*W*T#fe©m»»nfc‘ra«fcl 


THE LEX COLUMN 


\ I..' 1 ,.-!"'' 


around 10 per cent. 

It is dear that the van Agt ! 
Government .broke up only 
after repeated attempts at com- 
promise. The fact that the two 
main parties involved were un- 
able to come up with a solution 
to the economic problems of 
the country demonstrates the 
extent of f je rift between them 
and the politics* difficulties 
that lie ahead.-- 


« * ' 


at 




Winning design for Green Giant site 


These include the Green 
Giant site, so named after a 
previous scheme involving a 
large tower planned by the 
site's owner, European Ferries 
(an option for the consortium 
to acquire this land for around 
£2 -5m expires in July); the 
Effra site, formerly owned by 
the Government, and the Nine 
Elms Cold Store site on a long 
lease from British Rail and 
Associated Fisheries. 


Trafalgar is ,a powerful 
advertisement for the benefits 
of demerging. Last year, before 
it announced its intention to 
hive off its publishing interests, 
the shares were languishing at 
around 80p. Yesterday, bolstered 
by some excellent interim 
results, they moved up a further 
3p to 136p, making a grand 
total of about 141p when the 
new Fleet shares are added back 
in. Pre-tax profits in the six 
months to March have risen by 
£62m to £27.7to, even without 
the benefit of £6.1m of publish- 
ing profits. Interest charges have 
come down. by £3m, but only 
about £lm of this can be 
attribisted to the hiring off of 
Fleet 

With property sales now 
coming through strongly, 
trading profits here have 
jumped by 48 per cent to £13.4m. 
Meanwhile, the size of the over- 
all development programme has 
been maintained. Construction 
profits have also moved ahead, 
helped by the close links with 
the property side, while the 
group has been successful in 
winning large orders abroad. 
On the shipping side, an easier 
labour background and weaker 
sterling bas allowed profits to 
rise from fl.lmto £3.9m. 

So the pre-tax outcome for 
the year may approach £70 m, 
against £55m. Net debt is likely 
to fail from £130m to about 
£30m, down from more than 
half to a third of shareholders* 
*unds, which are likely to be 
little changed in spite of 1 he 
Fleet demerger. So there will 
be more acquisitions in the 
Redpath Dorman Long mould. 
The prospective yield is 7.8 per 
cent, and the rerating may still 
have further to go. 


Index rose 5.8 to 590.0 



in. Europe before costs are 
brought into line with reduced 
demand. Nevertheless, the group 
is - now beginning to expand 
again, mainly in the U.S. 
Geographic quality of profits 
may have declined this year, 
but Coats has plenty of strings 
to its bow. -The shares rose 4p 


p>- 

r 




yesterday to 70p, where the 
yield is 8.5 per cent '• 


writing loss. 

With its balance sheet in 
strong shape following last 
year's rights issue, the only 
real doubts centre bn the U.S., 
where premium income rose. 23 
per cent in dollar terms during 
the first quarter. This is roughly 
double The growth expected for 
the fuH year, but Royal will 
still be picking up market 
share at a time when rates in 
many areas are deteriorating. 
Royal -has already Wished up its 
commercial multi-peril rates 
and sees a few signs of recovery 
elsewhere but, even allowing 
for the weather, its claims ratio 
of 85.4 per cent is not encourag- 
ing. The shares yield 10.4 per 
cent 


Coats Patons 


Royal Insurance 


Royal Insurance bas suffered 
as badly at the bands of the 
winter weather as its rivals, 
reporting a first quarter loss of 
£3.5m pre-tax compared with a 
profit of £26.7m last time. But 
at least there is evidence that 
last year’s heavy loss makers, 
Australia and Canada, are 
starting to turn round anff the 
shares finished 3p higher at 
346p. 

UK weather losses totalled 
over £30m,. roughly £10m above 
RoyaTs earlier ’expectations. 
The U.S. winter also produced 
some nastly shocks, particu- 
larly as the “ sun belt " failed 
to live up to its name. But this 
is now past history. Elsewhere, 
the retrenchment in Canada has 
cut back premium in oome in 
local currency terms and 
sharply reduced the under- 


Coats Patons seems to be win- 
ning the battle against falling 
demand. Overall volume has 
dropped -back by a further 3} 
per cent in 1981, yet pretax 
profits are up by £8-9ra to 
£74.8 m. The underlying picture 
is rather better, with a £14.6m 
improvement before adding in 
surpluses on fixed assets 
realised. Most of the gain can 
be attributed to weaker sterling 
— worth an estimated £13m — 
but this remains a very credit- 
able performance in the context 
of the difficulties of the sector. 

But the mix has changed 
significantly, with the South 
American contribution moving 
up from 29 to 42 per cent of 
total profit before tax and loan 
interest Even though volume 
ha been under pressure here, 
the company has been able to 
keep prices moving up to com- 
pensate for the devaluation of 
local currencies against the U.S. 
dollar. The trading picture in 
the UK is steady, but the com- 
pany still has much work to do 


yield is 8.5 per cent 

European Ferries 

European Ferries has repaired 
most of the damage caused by 
cross-channel ferry losses during 
its first six months. Group 
profits for the full year to 
December are still 28 per cent 
'lower at £21.8m but an upward 
trend has . categorically been 
restored. 

The shipping division, which 
reported a loss of £9.3m at the 
interim stage, pulled back to a ; 
full year profit of £1.9m — 
admittedly helped, by an. - 

£800,000 daw-back of an old 
provision. Euro Ferries has its .■ 
new fleet fully installed and a 
15 per cent tariff rise behind iL 
With freight volume still buoy- 
ant, the current year looks far ' 
more promising. 

Spending on the Felixstowe 
harbour development bas now 
run down, so most divisions are 
generating cash. This is reflected ! *' * 

in a balance sheet which has . 
received additional support from 
last year’s rights issue and ‘ 
shows net debt falling from 41 
to 26 per cent of shareholders 
funds. All eyes are now on the 
U.S., where Euro Ferries is 
expanding its property interests ‘ - 
with some haste. They contri- 
buted about £4in last year and - ’ 
the rate uf completions is pro- : 
bably accelerating. At last ■ 
night’s share price of 81p, the _. 
yield is 5.6 per cent. ’’Jt*- 


Govt borrowing 

A central Government bor- 
rowing requirement of £815m 
for April has got the new finan- 
cial year off to what was 
regarded yesterday by the gilt- 
edged analysts as a slightly 
below par first month. There 
is no great sign of further re- 
payments of the remaining 
revenue backlog due to last 
year’s . cavil service dispute, 
and before very long the auth- 
orities could- feel the need to 
make a -delayed start on the 
1982-83 funding programme. 
Yesterday, however, the mood 
in the market was all to do with 
the latest hopes of a Falklands 
settlement, with gilt-edged 
prices up about three-quarters 
of a point, and the sterling 
exchange rate joining in the 
fun. 


ADVERTISEMENT 


NEWS 
REVIEW 


AVIONICS 


BUSINESS 


Blue Fox radar for 
Indian Sea Harriers 


Microwave 
links for 
Eastern Gas 


British Gas, Eastern Region, 
has ordered Ferranti Type 
1400 microwave radio relay 
equipment A two-hop system 
will extend the capacity and 
performance of a ring route 
within the Eastern Gas 
Regional Microwave Radio 
Network. Ferranti is supply- 
ing. Installing and fully com- 
missioning the system. 

The equipment is being sup- 
plied in non-duplicated form 
and with heated radomes. It 
will operate in the 7 GHz 
band, providing 300 telephony 
channels. 


The first Ferranti Blue Fox 
radar for the Indian Navy's 
Sea Harrier aircraft was 
recently delivered from the 
Company's Radar Systems 
Department in Edinburgh — 
another export milestone for 
the Department. 


Blue Fox is a lightweight air 
intercept search and strike 
radar especially designed by 
Ferranti for the British Aero- 
space Sea Harrier. It is 
already in service with the 


British Royal Navy and prov- 
ing a success. 

During recent NATO exer- 
cises Blue Fox demonstrated 
Its effectiveness in perform- 
ing well the operational tasks 
for which it was designed. 
The respected journal “Inter- 
national-Defense Review " 
reported that 100% avail- 
ability was achieved for most 
of the time and the squadron 
-returned from the three- 
month cruise .with all its Blue 
Fox radars serviceable. 


*4- 


ENGINEERING 


Testing investment 


New laser project 


Professional Components De- 
partment of Ferranti pic has 
leased - an additional factory 
unit in Dundee to house a 
new Optical Components 
Group. During the next three 
years, approximately 100 new 
jobs will be created in the 
field of carbon dioxide lasers 
and allied optical component 
production- 


The Weapons Equipment De- 
partment of Ferranti Instru- 
mentation Ltd. has recently 
taken a lead in environ- 
mental testing facilities by 
investing in a highly versa- 
tile. totally microprocessor 
controlled, panctimatic cham- 
ber. 


services already provided by 
.the . Environmental Trials 
Group at the Department’s 
factory in Moston, Manches- 
ter. . 


Briefly . . 


Indication of Microwave 
Propagation (IMP) software 
program— -a recent Ferranti 
breakthrough in “ stealth tech- 
nology ” — will be demon- 
strated on a compact Argus 
computer at the Hanover 
Defence Electronics Expo *82 
this month. 

Ferranti Cetec Graphics Ltd. 
has signed an agreement with 
Digital Equipment Corpora- 
tion, for the marketing of 
CAM-X products and digital 
computers in Western Europe. 
CAM-X is Ferranti Cetec’s 
computer-aided engineering 
(CAE) system. 


Believed to be. the first of Its 
kind in Europe to have, com- 
plete and automatic micro- 
processor control of tempera- 
ture, humidity and pressure, 
the chamber will consider-, 
ably enhance the range of 


These services are also 
offered to other manufac- 
turers who- lack their own 
facilities in this specialised 
area of engineering. They 
are used-, in the stringent- 
development . testing and 
evaluation - .of defence and 
civil projects which are 
required to. operate and sur- 
vive in harsh or adverse 
environments. ' 





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